Chapter 7 – Commercial
Property Losses
Introduction
-
Loss investigation
activities for commercial risks are similar to those for personal lines
-
The main differences
are the nature of the property is different (due to its use) and the wordings
are geared toward commercial policies
-
Business have many
levels of exposure with many policies that may respond to a loss like a CGL,
property policy and business interruption, to name a few
-
Commercial policies are
not standard wordings and therefore variation in policy wordings from insurer
to insurer must be reviewed by the adjuster to understand the coverages
available to a loss; endorsements may
limit or extend coverages; possibility
that due to the large size of the commercial risk being insured, manuscript
wording policy may be enforce
Interpreting Commercial
Policies
-
Policy analysis starts
with a review of the declaration page (dec pg)
-
The information a loss
adjuster looks for on the dec pg are:
·
Insured's information
·
Address of property
that is covered by the policy
·
Specific amounts of
coverage for the different lines of insurance
·
Other entities having
interest in the property insured (e.g. Mortgage)
·
Additional named
insureds
·
Parties having a legal
interest in the property insured
·
Loss payees who have
rights to indemnity (same as the insured)
·
Policy number
·
Policy wordings; i.e.
exclusions and limitations
-
The dec pg will include
the form number for the actual policy wording used; the adjuster should know
whether the wording is a standard wording or a manuscript wording
-
Mortgagees and other
lien holders and their interests must be noted on the policy because any claims
payment must include these entities as a loss payee
-
Another concern for the
loss adjuster is to see if policy wordings, with regards to lien holders, have
an independent right of recovery under the policy, regardless if the insured
has is some way breached a policy condition or committed insurance fraud
-
If the endorsement,
which is for the lien holder, has no clause to protect it, than any breach of
the policy or insurance fraud by the insured will extend to the lien holder as
well; both the lien holder and insured
will forfeit indemnity under the policy in this instance
-
When a
endorsement/clause exists that protects the mortgagee even if the insured has
breached a condition of the policy or committed insurance fraud, the insurer
can assume the interest of the mortgagee;
the insurer can pay the full mortgage balance and try to recover the
loss payment from the named insured or foreclose upon the property to sell it;
an insurer would choose this option if the property has a significant value
-
The following
principles are used to interpret policy wordings:
·
What was the purpose of
the parties to the contract if this contract was enforce; ambiguous elements should be reviewed closely
to see what expectations were available
·
Policy wordings should
be read as a whole
·
Words and phrases used
in wordings should e given their ordinary everyday meaning unless they have
been otherwise defined in the policy
·
Provisions in the
policy should be interpreted broadly in favour of the insured and exclusions
should be interpreted strictly and narrowly against the insurer
·
Contra
Proferentum Rule - when ambiguity exists the policy should be
construed in favour of the insured, as it was the insurer who drafted the
contract; this imbalance of power, since
the insurer wrote the contract, protects the insured from any ambiguous
wordings and goes against the party that drafted the contract
·
A clause under review
should have its intent taken from the policy
·
It is the insured who
must prove that coverage applies
·
It is the insurer who
must prove that a exclusion or limitation clause applies
-
Some words and phrases
that are commonly used in policies have been subject to judicial review; the loss adjuster should make note of the law
and the developing legal trends; a
decision on one case may not apply to another case
-
The loss adjuster must
be alert to the possibility that an insured, faced with damaged property that
is not covered by the policy may have a motive to commit insurance fraud
-
A warranty, whether
expressed (in writing) or implied, may be used to limit policy coverage; a promissory warranty requires strict
compliance under all circumstances
-
The results, if an
insured fails to comply with a policy warranty, are the following:
·
Limit policy coverage
·
Insurer may be
discharged from liability under the policy from the date of the breach
·
Void the policy ab initio (from the beginning)
·
Suspend the policy
coverage until the breach is remedied
Breach
of Condition
-
A breach of condition
clause keeps the policy coverage enforce for losses that are not related in any
way to the breach of warranty
Example - A hailstorm damaged the insured's roof. The hailstorm occurred after the insured had become aware that the fire detection system in the property was no longer in service. The lapse of the fire detection systems had no effect on the hailstorm damage and would not affect the coverage for the hailstorm damage, since a fire detection system was not designed to detect hailstorms
Example - A hailstorm damaged the insured's roof. The hailstorm occurred after the insured had become aware that the fire detection system in the property was no longer in service. The lapse of the fire detection systems had no effect on the hailstorm damage and would not affect the coverage for the hailstorm damage, since a fire detection system was not designed to detect hailstorms
Property
Protection Systems
-
The Property Protection
Clause stat that the insured must notify the insurer of any interruption (to
the insured's knowledge), or a flaw in or defect of any:
·
Sprinkler or other fire
extinguisher systems
·
Intrusion detection
systems
·
Cancellation or
non-renewal of any contract which provides monitoring or maintenance services
·
Suspension of policies
in response to any fire detection or intrusion detection systems
-
Basis of settlement is
explained in the policy and is normally ACV for many policies
-
Some policies may have
wordings that waive the co-insurance clause if the loss is under a certain
amount, but if the loss is of a large amount then the co-insurance clause will
be applied
Example - Sunfire Inc. has a policy with the amount of insurance set at $1mill on equipment with a 100% co-insurance clause. Upon a thorough investigation the loss adjuster was able to verify the loss to the insured's equipment was valued at $400,000. However, the adjuster also determined in the course of the investigation that the total value of the equipment was $2mill. The co-insurance formula used to determine the basis of settlement and was applied as follows:
Amount of insurance carried (DID) x Amount of Loss = Settlement Amount
Amount that SHOULD have been insured
$1,000,000 x $400,000 = $200,000
$2,000,000
Example - Sunfire Inc. has a policy with the amount of insurance set at $1mill on equipment with a 100% co-insurance clause. Upon a thorough investigation the loss adjuster was able to verify the loss to the insured's equipment was valued at $400,000. However, the adjuster also determined in the course of the investigation that the total value of the equipment was $2mill. The co-insurance formula used to determine the basis of settlement and was applied as follows:
Amount of insurance carried (DID) x Amount of Loss = Settlement Amount
Amount that SHOULD have been insured
$1,000,000 x $400,000 = $200,000
$2,000,000
Condition of Risk
Referred to Underwriters
-
The adjuster will refer
a risk to underwriters when information is uncovered that shows:
·
The risk was
misclassified
·
The risk does NOT meet
the underwriting criteria
·
There is a material
change in the risk that could possibly void coverage
-
The underwriter may
decided to increase the premium or take some other action on the risk that may
interfere with the smooth and competent handling of the claim
-
The actions decided by
the underwriter should be carried out by the loss adjuster, but the loss adjuster
should weigh the consequences carefully as inappropriate action may seriously
impede the progress on a claims file
Urgent Claims Action
-
In a claims situation
it is the insured's responsibility to authorize:
·
Quick emergency action
·
Clean up of premises
·
Board up premises to
ensure access to dangerous property is controlled
·
Protect the insured
property against further damage
·
All actions must be
done to mitigate the cost the claim
-
The insured can do
recovery work, which may help keep the costs to reasonable levels
-
The loss adjuster may
enlist the help of an engineer or a general contractor to ensure that the work
is done properly and economically; e.g. work like taking down walls and shoring
(supporting existing structures to prevent them from falling)
-
Once the damages are
assessed the loss adjusters should notify the underwriters
-
After emergency work
has been completed, the general contractor would be asked to estimate damages
according to the scope-of-repair; an
experienced, knowledgeable, and competent general contractor or estimator
should be hired
-
The scoping of insured
damages is an important step in the claims process as it will determine if an
item can be repaired or replaced; e.g. A wall may need cleaning and repainting
rather than being taken down and replaced;
items that require replacement may still have a residual salvage value
-
Often the adequate
scoping for the repair estimate will be the centre of dispute when settling the
claim
-
Review of the estimate
is also required in order to ensure:
·
items were not
overstated
·
that more work wasn't
done in order to drive up costs
·
price on a particular
item was not inflated
·
quantities or
measurements have not been overstated
·
that old unrepaired
damages are not to be included in the claim
-
However, it is the duty
of the insurer, once it invokes its right to complete the repairs, to do so
competently; if the roof was installed
incorrectly the insurer must make good on the faulty repair work otherwise any
resulting damage due to the improper repairing the roof will rest with the
insurer; the insurer may have a
subrogation opportunity against the roofer who negligently installed the roof
Salvaging Operations
-
The reason an insured
might perform salvage activities are:
·
To mitigate the cost of
the loss
·
Insured is the rightful
owner of the damaged property until the insurer indemnifies the insured; there may be policy conditions that state
there can be no abandonment of damaged property to the insurer without prior
written consent from the insurer
·
Insured may have
strategies in place to save property from further damage
-
Often there is a narrow
time frame for decisions in which salvage operations can be effective
-
The more time that
passes, the more likely there is a decrease in the value of the goods; the quicker the salvor can turnover stock the
more profit will result
-
The salvor who bids on
damaged goods must know all the costs that they will have to incur in order to
repair it
-
On partially damaged,
reconditioned stock the settlement of the claim would be the cost to
recondition or repair the property. If
the property is sold as damaged stock (i.e. fire sale) the claim would be
settled on the difference between the normal sale price and the reduced price
Example - Merchandise that was damaged due to fire but was still sellable as damaged stock was done so by the insured. The merchandise was sold at 70% off the normal price. The cost to recondition the stock was more costly and the insurer agreed to settle the insured's claim for the difference of the sale price and the discounted price; i.e. 70%
Example - Merchandise that was damaged due to fire but was still sellable as damaged stock was done so by the insured. The merchandise was sold at 70% off the normal price. The cost to recondition the stock was more costly and the insurer agreed to settle the insured's claim for the difference of the sale price and the discounted price; i.e. 70%
-
Reputable professional
salvors and liquidators may offer appraisal services, out-of-market sales
(person or entities that sell items to wholesalers who then sell to retailers)
or auction services; the salvor may
charge for each service provided, such as:
·
picking up the goods
·
transporting the goods
·
packing the goods
·
storing the goods
-
The insured would have
to sign off on any salvage sale agreement as they own the property unless they
are indemnified by the insurer who then assumes the right of recovery through
the policy contract
Water Damage Losses
-
The cause of the water
damage is the key to any investigation especially if the policy is a Named
peril form
-
For commercial risks
the Named peril form covers only water escape from the fire protection
equipment, like sprinklers and all other water escape losses are excluded
-
Water related perils
typically excluded under the broad form coverage of a commercial policy are:
·
Floods which include:
Ø Waves
Ø Tides
Ø Tidal
waves
Ø Tsunamis
Ø Rising
of, breaking out, or overflow of any body of water (natural or manmade)
Ø Exceptions; if the proximate cause of the loss was fire,
explosion, smoke, leakage from protective equipment, leakage from a water main,
or property in transit
·
Seepage, leakage, or
influx of water derived from natural sources through basement walls, doors,
windows, or other openings from:
Ø Foundations
Ø Basement
floors
Ø Sidewalks
and side walk lights
Ø Sewer
backup
Ø Sump
pump, septic tank or drains
Ø Exceptions;
if the proximate cause of the loss was fire, explosion, smoke, leakage from
protective equipment, leakage from a water main, or property in transit
Commercial Fire Losses
-
If the loss adjuster
visits the loss site of a fire loss, s/he should examine where the fire
originated, if the circumstances permit
-
For commercial
establishments that have a kitchen, there is a good chance the fire will
originate in this area
-
If the kitchen is the
point of origin of the fire the adjuster should review the history of the
following:
·
Maintenance
·
Cleaning schedules
-
The insured should have
kept records of these activities in order for the adjuster to properly
investigate the claim; the loss adjuster
should also interview any staff and insured of who was the last person to use
the cooking equipment and how it was used
-
The loss adjuster
should investigate the source of power for the cooking equipment (e.g. natural
gas or electricity) to compare it to the information the insured presented in
the application
-
The loss adjuster should
be familiar with equipment that is used; e.g. pizzeria's may use a wood-fired
pizza oven or a electric pizza oven while other restaurants may use deep
fryers, gills, or bake ovens for their cooking processes
-
For those
establishments that use deep-frying equipment and grills the grease vapours
that are produced are suppose to be drawn into the exhaust hood; these types of exhaust hoods have filters and
ducts that must be cleaned periodically to prevent grease build up to prevent
the hazard of fire; logs or invoices for
contractors should be reviewed in order to see when the last service was
completed
-
If faulty workmanship
for the maintenance of the cooking equipment is the cause of the fire loss the
adjuster should be aware of any subrogation opportunities against the service
contractor; there is also a possibility
of subrogation against the supplier of materials that were defective causing
the loss, like the filters used in the exhaust hood that failed to properly
absorb the grease vapour
-
The loss adjuster
should also investigate to see if the sprinkler system was working; if it was not working when did the insured
come to know this fact; there are warranties in the contract that state the
insured should inform the insurer of any defects to the sprinkler systems, as
this is a material fact that will affect the risk and possibly invalidate
coverage under the policy if the insured knew prior the loss
-
The reason the insured
may have a motive for arson for loss caused by perils excluded by the Broad
form commercial policy are:
·
The existing damages
due to the excluded peril are too costly to repair
·
Reconstruction will
take longer than expected and would severely damage the insured's ability to
operate the business
·
Bylaws violation have
been exposed and the cost to repair has greatly increased
·
Equipment needed by the
insured to operate the business was damage due to the excluded peril and this
has caused customers to find competitors, severely crippling the revenue stream
of the insured
Stock Losses
-
Basis of settlement for
stock; manufacturers may lose stock in various stages of production; finished goods and goods partially
manufactured, indemnity is restricted to the cost of materials plus the cost of
labour and other incidental charges necessary to bring the product up to the
same state it was it prior to the loss
-
Stock already sold and
waiting to be delivered would be valued at the price for which it was sold less
any discounts applied; unsold stock is
settled on the ACV
-
For Stock declaration
policy forms, coverage is on the basis of the actual cash value and losses will
be paid according to the stock values reported
-
The insured may suffer
penalty if the amount of insurance was not adequate to cover the loss or the
application of the co-insurance clause in the policy
Builders Risk Losses
-
AKA Course of
Construction insurance policies
-
Designed specifically to
insure property that is under construction
-
The loss adjuster
should account for unforeseen problems like:
·
soil conditions that
need to be addressed prior to construction
·
water table levels that
rise and possibly pose greater hazard
·
termite infestation
·
cracked foundation
·
mold or fungi
·
asbestos used in
original construction
-
If these problems exist
there could be a motive for insurance fraud
-
The builder's risk
policy covers the owners, the general contractor and any sub-contractors is to
provide blanket coverage in order to avoid disagreements in the course of a
claim when a party involved in the construction project has its own insurance
policy
-
The subrogation clause
in a builder's risk policy waives all subrogation rights against any party
insured by the policy, this way if any party insured causes damage, as a result
of negligence, the insurer will not subrogate against that party
-
For claims covered
under builder's risk, coverages are provided on an all risk basis and
exclusions will determine what is covered and what is excluded; the loss adjuster should determine both the
proximate and immediate cause of loss in order to determine if coverage applies
-
Builder's risk broad
form provides replacement cost coverage; this includes the cost of replacing,
repairing, constructing, or reconstructing the property as long as the
following conditions are met:
·
takes place on the same
site
·
materials are new or of
like kind and quality
·
occupancy of the
building is unchanged and remains as it was originally intended
Contractors Equipment
Floater Losses
-
Contractor's equipment
floater insurers large equipment used for:
·
building roads
·
excavations
·
construction
·
road maintenance
·
snow removal
-
Coverage also extends
to hand tools and smaller pieces of equipment, as well as machinery and
equipment under the following circumstances:
·
while it is on the job
·
in transit between jobs
·
undergoing repairs in a
repair shop
·
being stored in the
open or inside
-
Exclusions under the
Contractors Equipment Floater are for machinery or equipment that is rented or
leased, but this can be insured through the addition of an endorsement
-
Other exclusions
include losses that are caused by exceeding the rated capacity of the equipment
Example - High Hoisters Inc. operates a crane to hoist materials and equipment to upper floors of buildings. Due to labour and weather delays the project falls behind. In order to make up time the company uses larger loads to hoist materials to the upper floors, but exceeds the maximum recommended capacity. On a large load hoist the crane collapses. After a thorough investigation the loss adjuster confirms the loads used exceeded the recommended weight capacity of the crane causing the crane to collapse and as such the insurer denied the claim
Example - High Hoisters Inc. operates a crane to hoist materials and equipment to upper floors of buildings. Due to labour and weather delays the project falls behind. In order to make up time the company uses larger loads to hoist materials to the upper floors, but exceeds the maximum recommended capacity. On a large load hoist the crane collapses. After a thorough investigation the loss adjuster confirms the loads used exceeded the recommended weight capacity of the crane causing the crane to collapse and as such the insurer denied the claim
-
There may also be
specific limits of insurance and the loss adjuster should review all wordings
under the policy
-
The insured must inform
the insurer of any purchase for any newly acquired equipment within a specified
period of time from the date of acquisition in order for coverage to be
extended to the newly acquired equipment
-
Co-insurance clause
also exist which could penalize the insured for not insuring the property to
value
Installation Floater
Claims
-
A contractor can be the
following and more:
·
Cabinetry installer
·
Heating installer
·
Air conditioning
installer
·
Plumber
·
Equipment for
production installer
-
While installation is
taking place the contractor has an insurable interest in the material, fixtures
or equipment until either the work has been accepted or the contractors
interest in this property ceases; the
contractor's interest in a property will usually cease when the work is
completed
-
Example - Jeff was
contracted as a cabinetmaker under Residential Depot Inc. to install kitchen
cabinets and a counter top for Vijay.
Residential Depot provided the materials and equipment for Jeff to
complete the work. Residential Depot had
a installation floater added to its policy prior to the job. It took Jeff 10 days to finish the job and at
18:00 hrs on the last day he called Residential Depot HQ to advise the work was
done. Residential Depot was informed the
next day a fire had occurred at the residence where Jeff had completed the job
at around 20:00 hrs the day before.
Residential Depot put in a claim for the materials used by Jeff to
complete the job, promptly. The insurer
for the Installation Floater advised that Residential Depot's interest ceased
to exist at 18:00 hrs when Jeff completed the job and the materials used by
Jeff, upon completion of the job, belonged to the owner Vijay. The claim was denied due to a lack of
insurable interest.
-
Installation Floater
can be sold as Named Perils or All Risks coverage and the wordings are
customized to each insured and each operation
-
Contractors who install
electrical, refrigeration, mechanical, or other equipment may have testing
coverage added to the policy wording, otherwise damage to equipment as a result
of testing is specifically excluded
Boiler and Machinery
Losses
-
Boiler and machinery
coverage is a specialized area, and specialists from boiler and machinery
insurers usually attend to these losses
-
This type of policy
covers direct losses caused by accident to equipment specifically insured under
the property
-
"Accident" is
defined to be a sudden and accidental breakdown of the equipment insured which
results in simultaneous physical damage to it, and the physical damage must
require the repair or replacement of it
-
Equipment that may be
included for coverage are:
·
pressure equipment
·
boilers
·
hot water tanks
·
air tanks
·
steam cookers
·
refrigeration and air
conditioning vessels
·
piping
-
Basis of settlement
would be the least of the cost to repair the damaged property or the cost to
replace it with property of like kind, capacity, size, quality, and function; another condition when equipment is to be
replaced is that it must be installed for the same site or an adjacent site
-
Depreciation is NOT
applicable unless repairs or replacements take place twelve (12) months after
the date of the accident
-
Property that is
excluded under the policy are those deemed useless or obsolete to the insured
-
Perils excluded is if a
fire, smoke, combustion or explosion occurs, which is not related to the boiler
& machinery equipment, but boiler & machinery equipment is damaged
along with other property; this is
excluded as it is covered under the property policy
-
Exception to the peril
excluded is arcing occurs within an electrical object causing a fire; it is difficult to separate damages within
the equipment; the boiler &
machinery insurer and the property insurer will share the loss to the
equipment; Agreement of Guiding Principles is often used by insurers when
multiple policies cover the same loss and this agreement is provided to
signatory insurers who are members of the Agreement through the Insurance
Bureau of Canada (IBC)
Example - Part of the Agreement will address rateable contribution when multiple policies that cover the same loss have different deductibles. Often the purpose of such an Agreement will give a larger settlement to the insured and provide a more equitable rateable contribution to the insurers, balancing the principle of indemnity and fair contribution of indemnity by multiple insurers
Example - Part of the Agreement will address rateable contribution when multiple policies that cover the same loss have different deductibles. Often the purpose of such an Agreement will give a larger settlement to the insured and provide a more equitable rateable contribution to the insurers, balancing the principle of indemnity and fair contribution of indemnity by multiple insurers
Subrogation in Property
Claims
-
Subrogation in
commercial claims are similar to those in other claims
Example - A roof collapses shortly after being installed. The loss adjuster explores the possibility that the installer used defective roof material, the roof was inadequately designed, the roof was improperly installed or a combination of these. The loss adjuster, once having enough evidence, explores the opportunity to subrogate against the installer or the product manufacturer or both based on the investigation results
Example - A roof collapses shortly after being installed. The loss adjuster explores the possibility that the installer used defective roof material, the roof was inadequately designed, the roof was improperly installed or a combination of these. The loss adjuster, once having enough evidence, explores the opportunity to subrogate against the installer or the product manufacturer or both based on the investigation results
-
It is important to
manage an insured's expectations on a subrogation action because the attempt to
recover funds from the responsible party may not be successful or economical to
pursue; the factors to consider when an insurer pursues subrogation are:
·
Responsible party is
judgement proof (has no assets or financial ability to satisfy the award)
·
Responsible party
didn't carry liability insurance
·
Responsible party may
be deceased and any subrogation recovery action dies along with the responsible
party
·
Responsible party is
NOT in a position to defend his/herself;
however a default judgement can be secured
·
Responsible party can
NOT be located
·
Responsible party is incarcerated
and restitution will take an extended period of time
-
There are many factors
that must be evaluated when an insurer decides to pursue recovery
-
Parties who may be
responsible for the loss must be put on notice as soon as possible; the insurer should send out a letter
confirming the damage and demanding payment from the responsible party
-
An damage that is NOT
indemnified by the insurer to the insured can be recovered by the insured
against the responsible party unless statute law prohibits such an action; i.e.
the Insurance Act of Ontario
-
When only part of the
claim has been recovered the policy or insurance act will determine how the
money is to be distributed to the insured and insurer; most often the insured will be entitled to
recover his/her loss total first and the balance will go to the insurer; the insurer has the right to deduct its
expense to pursue recovery from the amount obtained from the negligent party
prior to the distribution of funds to the insured
-
The amount to be
recovered from the negligent party is subject to negotiation; the tortfeasor may NOT be required to pay
back the full amount recovered under the insurance contract
Example - The insured had hired Rob Builder's Co. to add an addition to its existing building. During construction the wall was not shored properly and fell causing damage to equipment owned by the insured. Falling objects are covered under the insured's property policy on a replacement basis. Equipment was damaged beyond repair, due to the falling wall and was replaced by the insurer with a new like kind & quality equipment. The CGL policy of Rob Builder's Co. refused to settle the claim for the equipment at replacement cost and instead was only legally obligated to pay the ACV of the equipment that was damaged. The equipment that was damaged was 5 yrs old. The CGL insurer paid 50% of the replacement cost of the new equipment. The insured's insurer accepted the negotiated value based on ACV.
Example - The insured had hired Rob Builder's Co. to add an addition to its existing building. During construction the wall was not shored properly and fell causing damage to equipment owned by the insured. Falling objects are covered under the insured's property policy on a replacement basis. Equipment was damaged beyond repair, due to the falling wall and was replaced by the insurer with a new like kind & quality equipment. The CGL policy of Rob Builder's Co. refused to settle the claim for the equipment at replacement cost and instead was only legally obligated to pay the ACV of the equipment that was damaged. The equipment that was damaged was 5 yrs old. The CGL insurer paid 50% of the replacement cost of the new equipment. The insured's insurer accepted the negotiated value based on ACV.
Adjuster's Reports
-
The loss adjuster will
send a preliminary report to the insurer within 24 to 72 hours, once the
insurer has been informed of the claim
-
The preliminary report
for more complex loses will likely have less information as investigation
remains pending
-
The preliminary report
for less complex claims will usually be more thorough and often the preliminary
report will also be the final report
-
The preliminary report
will note:
·
any coverage issues
·
provide an tentative
estimate for the amount of loss for reserving purposes
·
recommendations for
future handling of the file
·
recommendation of any
advance payment to the insured to mitigate the claim
-
The Detailed Adjuster's
Report will follow the preliminary report;
the detailed report will usually be delivered to the insurer within
approximately 15 days after delivery of the preliminary report
-
The loss Detailed
Adjuster's Report will usually contain the following information:
·
Detailed narrative of
the loss
·
Explanation of the
damages
·
Repair estimates for
the damages
·
Salvor's information
and evaluation of what is not repairable; any salvage value for damage property
·
Copies of contracts;
e.g. Lease agreements
·
Statements of parties
involved in the loss; i.e. TP, insured, witnesses, police, fire dept.,
investigator, etc.
·
Emergency service
reports; e.g. Police, fire dept, ambulance records, etc.
·
Reserve recommendations
and revised updates
·
Recommendation of
advance payments in order to mitigate the claim; these payments will only be
issued if the insurer gives permission to do so