Weathering the Storm

Mike Leedham remembers “Black Friday” well. On that date in Edmonton, July 31, 1987, a powerful tornado tore through the eastern part of the city, killing dozens and injuring hundreds. It also left a trail of property damage in the millions of dollars.

The year before, Leedham had joined what was then Dobie Townsend Adjusters Ltd., now Townsend & Leedham Adjusters Ltd., as a partner. It was a “trial by fire” start for the independent adjuster, who had previously worked as a claims supervisor for Economical Insurance Group.

“We had more claims in one month than we would typically get in a year,” he recalls. “At one point, my wife left with the kids to visit family out East for three weeks because I was simply not around. We were working from dawn until dark and then some.”

One of the firm’s founding partners, Bud Townsend (ex of Wawanesa and now retired), was driving to his acreage residence on the eastern edge of Edmonton when he saw the tornado cross the road behind him in the rearview mirror. “Too close for Bud’s comfort – mine , too!,” Leedham remarks.

Being exposed to the aftermath of dangerous situations and helping people recover from traumatic losses is one of the responsibilities that independent adjusters sign on for as part of their professional role. The 24/7 availability for response to losses of all types “is just part of the deal,” he says.

For Leedham, who is now president of Edmonton-based Townsend & Leedham Adjusters Ltd., that commitment to service extends to all types of claims that the firm handles – auto, personal, farm and commercial/ light industrial property and casualty losses.

“We’re a general insurance adjusting business and that pretty well describes what we do,” says the 40-year veteran of the claims profession. “One never knows what’s coming in the door tomorrow.”

Townsend & Leedham has 18 licensed adjusters and 12 support staff. In the adjusting business since 1980, the firm services the area of central Alberta from Jasper to Lloydminster, north to Slave Lake and south to Red Deer. Its business extends from the British Columbia to Saskatchewan provincial borders.

Leedham says that claims adjusting expertise is wide and varied at the firm, with most of their adjusters having 20, 30 or even 40-years of experience in the business.

“This provides us with an enviable in-house resource that we all take advantage of from time to time,” he observes. “We’ve been fortunate to attract experienced adjusters with a good work ethic who have broadened our overall expertise. We’ve also been lucky to have a competent, loyal and stable support staff who have definitely contributed to our success. As we’ve grown, we have diligently maintained our ‘small office’ atmosphere.”

Leedham adds that the adjusting expertise and committed support staff provide “stability for dealing with challenging situations.”

One of those “challenging” situations was the Slave Lake fire of May 2011. The blaze caused more than $700 million in insured losses and was the second costliest disaster in Canadian history. But for Leedham, whose firm helped adjust several of the claims, the cold facts don’t describe the intensity of the event.

“The pictures or television images didn’t truly show the extent of destruction,” he says. “You really had to be there. Walking along a street, there would be one house standing and the rest were completely destroyed. Concrete foundations had turned to powder.”

Leedham notes that one of the most difficult aspects of the Slave Lake fire was the waiting period of up to two weeks before authorities allowed adjusters and residents back into the community. Policyholders simply didn’t know what their situations were and how or when things were going to be resolved.

“Many of the residents stayed in and around Edmonton and some of them didn’t know if their property was standing or completely destroyed – and there were 374 total losses,” he says. “Once we got in, the authorities had done a lot of clean-up and labeled most of the properties making the initial claims adjusting process smoother.”

Leedham notes “as in any catastrophic situation, the adjusters’ issues are insignificant compared to those of the people involved and, in this respect, the residents of Slave Lake have been nothing short of amazing.”

“On the personal side, we encourage our adjusters to keep a proper balance between work and their personal lives” he says. “With the fire in Slave Lake and the subsequent summer storm claims on top, things got a little stretched throughout our industry last summer, but this business always seems to have its ups and downs. This past winter was unusually mild, with fewer claims, so we’ve been able to catch up.”

Beyond the day-day workings of the office, Leedham is keenly aware that there are national legislative issues that can affect independent adjusters across the country. With Townsend & Leedham as a full member of the Canadian Independent Adjusters Association, he is supportive of the unifying role the association has on the regulatory landscape.

“As individual adjusters, we can get caught up in the daily grind of what we do,” Leedham notes. “But we also need representation at the federal level. When politicians and legislators look at the insurance industry, they need a central point of contact and response – a ‘stakeholder’ to deal with. That is what the CIAA does for us as adjusters – it represents our interests on a national scale. It is the perfect vehicle for that role.”

The CIAA can also provide guidance on a wide range of emerging policy issues, according to Leedham. “Polices and procedures are ever evolving as our industry responds to the challenges and demands of a rapidly changing world,” he says. “This, in turn, affects the adjusting business. The Internet, Facebook, privacy legislation all make our business more interesting.”

When asked about the future, Leedham says he doesn’t have a crystal ball for predicting what’s coming but knows that things will continue to change and service will remain the key aspect for the insurance industry.

“I’m sure this is going to remain a ‘service’ industry and that will be the key issue for all components of the insurance business – from brokers to underwriters to claims departments to independent adjusters and service providers.”

For his adjusting firm, Leedham emphasizes that the business approach is squarely focused on the customer, whether that be the insurance company client or the policyholder who has experienced a loss.

“Our company philosophy is to provide quality claims services at a reasonable cost, with an emphasis on service,” he says. “We have developed and maintained long-term relationships with our clients, some of whom have been with us since day one. We take the approach that we’re in this business for the long haul and that governs our attitude towards our clients and the insuring public.”

Customer service is a concept that is often tossed around loosely in today’s economy. Leedham says some of the trends on the retail side leave him with an impression of less, not more attention paid to the end consumer.

“In this day of ‘big-box’ everything, where service is less of a priority, people are definitely looking for a higher standard from their insurers,” he observes. “We feel we are particularly well suited to respond to this demand with the training and experience of our adjusters, the quality of our office staff and our strong local knowledge and presence.&rd
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