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24 Maritime Reporter & Engineering News ? APRIL 2014 INSURANCE UPDATE Marine insurance ? just like health, automobile and homeowner?s insur- ance ? can be a valuable safeguard in case something unexpected happens. And when something bad hap- pens, it provides reassurance that you have assistance in place to help get back to business quickly. In the maritime industry, there is a high likelihood that your businesses will ex-perience a loss at some point. Vessels run aground, cargo containers get damaged, and Þ res occur in shipyards. These are just some of the types of situations that can ? and do ? happen routinely to mari-time owners and operators. Knowing these risks exist, you should ask yourself two questions to make sure your business is prepared: First, what can I do to mitigate the risk of loss be-fore an incident occurs? And second, how should I work with my insurer when something does happen? When You Have a Claim Imagine that you are a towboat or tug-boat operator hired to move other vessels and cargo for customers throughout the country. If your boat were rendered in- operable, you would stand to lose thou-sands of dollars a day during the period of time that the vessel is out of service. In an industry where margins are tight, this type of situation could cause serious harm to your business? bottom line. Here are four steps you can take to en-sure that your response to a loss does not make matters worse, but instead helps you get your business back on track:Action Step #1 Find an agent who understands your businessIf you?re the towboat operator, your needs will be different from the com-pany that builds and maintains vessels. This is why you want to work with a spe-cialist agent who has experience in your particular maritime niche, as opposed to an insurance agent who is a generalist. Action Step #2 Get the right coverage Marine insurance ? or any type of insur- ance ? is not a one-size-Þ ts-all solution. Businesses often have multiple policies with multiple coverages, placed with several carriers. This can be dif Þ cult to navigate for a business owner trying to coordinate coverage for a particular loss. Depending on the incident, there may be a gap in coverage, potentially leaving your business on the hook for substantial expenses. Working with a single carrier for all your insurance needs helps mini-mize gaps in coverage and avoid the po-tential for bureaucratic hassles, since the single carrier can view the entire scope of coverage with you. Action Step #3 Develop a contingency plan It?s never too late to think ?what if?? What if someone slips and falls on my vessel? What if a hurricane damages my ß eet and destroys my cargo? What if a Þ re started by a worker in a neighboring shipyard causes all the electricity to go out and disrupts my computer systems? In addition to carrying the right type of marine coverage and limits, it?s key to plan for the things you hope never hap-pen. Perhaps it?s arranging to charter someone else?s tug until you can get your vessel repaired, or buying a genera-tor and backing up all of your important company records in the virtual cloud. You may also want to consider purchas- ing business continuity insurance to help recover any potential revenue losses you may have. Having a plan in place can help you take charge when you need to most. Action Step #4 Know how to work with your insurance company Here are several ?Do?s & Don?ts? on how to maximize your relationship and interactions with your insurance carrier to help you get back to business: o Do contact your insurer right away. By waiting days, weeks ? or months ? after an incident, you risk losing valuable evidence or relying on faulty memories. o Do notify all insurers (this includes marine, property, casualty, etc.) o Do take pictures of the scene. Note the damage, the location, the weather, any cargo onboard and the people involved. o Do understand who the various players are in the claims process: ? Your agent ? may have signi Þ cant involvement in the claim. ? Surveyor ? an expert that will visit the vessel or site to assess the damages. ? Claim Professional ? an em- ployee of the insurance carrier who handles the claim investigation, the appraisal of damages, liability, the amount of coverage and recom-mends a settlement. ? Independent adjuster ? like a Claim Professional, he or she in-vestigates insurance claims, but unlike a Claim Professional, he or she may work for several insurance carriers. o Do consider meeting with insur- ance company claim representa-tives to create a course of action before you need to make a claim. Having these relationships in place can really help to expedite matters in the event of a claim. o Don?t start or authorize repairs un- til the insurance company has in-spected the damage and given you their position on what is payable. o Don?t throw anything away. This includes cargo manifests, receipts and passenger/worker logs. o Don?t admit liability (even if you think it was your fault). Leave that up to the insurance investigators and adjusters to determine. Admit- ting liability can cause big prob-lems on a claim.Creating Bene Þ cial Relationships Purchasing insurance is about hav-ing peace of mind ? it?s the protection against the unexpected that could de-stroy a business in an instant. By taking these four action steps, you can save im-portant time and money by having your claim processed as soon as possible and with fewer delays. Along with having the right coverages, a smooth claims process also depends on having a solid relationship with your agent and insurance carrier. This means working with professionals who special-ize in the maritime industry, who know your business and its risks, and who are committed to your company?s success. BY TERENCE HARRIS, SECOND VICE PRESIDENT OF CLAIMS, TRAVELERS OCEAN MARINE Staying Aß oat How to Work with Your Insurer When Experiencing a Loss MR #4 (18-25).indd 24MR #4 (18-25).indd 244/4/2014 10:33:15 AM4/4/2014 10:33:15 AM
