When What Could Go Wrong Goes Right

A major fire north of Toronto last December demonstrated the value of a clearly communicated and understood regimen of protocols — and the value of trusted and experienced relationships in the industry.

Picture it: 100,000 square feet of ashes, water-soaked debris, burned out windows — and it’s December 25.

When a fire broke out at Global Precast in Maple, Ont. on Christmas Eve, much of one factory building was damaged and another, where the fire took place, was completely destroyed. The company, who created precast structures for all types of buildings, had been looking forward to a year with orders to fill and signed contracts in the works. Now, it seemed unlikely those plans would be fulfilled. The fire was so intense structural I beams were warped, everything was stained black with soot, all electrical wiring was destroyed and the forms essential to create the company’s products were ruined.

Vito Cannone, president, called the broker to see what could be done in the middle of the holidays. “Our cherished business suffered a devastating blow as a result of the fire, Cannone said. “It ravaged our production area and rendered our company totally inoperable. We had uncompleted and unstarted contracts worth millions of dollars and no possibility of completing them. A total of 150 people faced unemployment and our family’s dreams were shattered.”

Claim timeline:

• December 25: the broker calls the independent adjuster, as per the insurance company’s protocol, while the fire marshal begins working on their investigation.

• December 26: The insurers claims manager is on-site and more than 75 workers are contracted to begin the clean-up so repairs can begin.

• January 18: From Boxing Day through New Years, despite the holidays, work continued and Global Precast was back pouring concrete and filling orders. As a result, the company kept all its contractual commitments.

Two months later

Building A is up and running — fresh clean paint, electrical, water lines, brand new floors — and Precast Concrete is happily back at work. Building B is moving along swiftly and will be in full operation soon. “We’re pulling in revenues and see growth ahead. The important thing to me is that we kept up with orders and didn’t let any of our customers down,” Cannone said. “I’m amazed at how smoothly and quickly the repairs were made -even in the middle of the holidays.”

Why it worked

Post event analyzing as to what went right to ensure a smooth recovery for the claimant is just as eye opening as investigating problems when things go wrong. When the insurance company reviewed the case, it became evident that protocols developed prior to the incident were well understood and precisely followed, resulting in a well-run claim. In short, each piece of the puzzle fell into place.

Protocol 1: Each person knew who to call

Prior to the incident, and as a regular policy, the broker was in regular contact with the insured and had been provided a document with protocol instructions in event of a loss, including who to call after hours. The independent adjusting firm had people manning the phone lines during the holidays who had the skills to start compiling the information without delay. They prepared a well-document- ed portfolio of information that was ready when the insurer arrived on the scene the next day. As a result, immediate decisions could be made.

The insurance company had a person available and on-the-scene with the authority to make crucial decisions. Also, a list of pre-approved contractors was prepared so there were no delays in getting workers to the scene immediately. A pre-approved list of contractors makes it easy for people at the scene to easily and quickly identify approved contractors who have the necessary resources for fire restoration with the appropriate level of manpower at a moment’s notice.

Protocol 2: Each person understood their role and had resources

Aside from an up-to-date and accurate list of contacts, each person involved in the claim understood their role. Training can make the difference between starting repairs on day one as opposed to day 10. Well-communicated and understood protocols make for better outcomes for insurers and the insured.

Handbooks and training sessions — some as short as a half day — can help minimize delays, costs and enable customers to feel they got help when they needed it the most. Training books should be provided to adjusters and branch offices to ensure each person understands the process as well as the insurance company’s expectations on handling claims. Each adjuster should complete the training and sign off to indicate they understand each process and procedure.

Protocol 3: Each person had authority

In this case, the staff on call understood their role in the claim process and had the information and authority to take the appropriate action. If claims staff does not have the authority and confidence to make decisions, the entire process can grind to a bureaucratic halt. Alternative measures for holidays and special cases were communicated and tested beforehand.

“[The insurance company] was there to help restore our business, took charge of the situation and immediately authorized emergency work, which saved valuable time and ultimately millions of dollars in business,” Cannone said. “Constant contact with us during the holiday period guaranteed a smooth flow of required authorizations and protocols that ensured we were up and running as quickly as humanly possible.”

A smooth claim boils down to protocols that are well communicated and understood. That may seem obvious, but ensuring they come alive and don’t just live on paper is harder than it appears. When a high pressure situation arises, protocols can provide simple solutions to complex problems, provided they are:

• Clearly understood

• Well communicated

• Kept up-to-date, and

• Followed with discipline

Naomi Dummett is a communications specialist at Zurich.