Reservation of Rights

In his continuing series of articles for Modern Claims Manager magazine, Thompson & Bryan Managing Director, Paul Lawrence picks up on the thorny subject of Reservation of Rights (RoR).

While acknowledging that insurers need to protect their position when considering liability he also feels that sometimes RoR is being abused.

It is an issue that the team at T&B encounter quite regularly and can lead to unnecessary delays and disillusioned policyholders.

You can read the article in full by following this link

Reputation, reputation, reputation

The Managing Director of Thompson & Bryan, Paul Lawrence, is often asked by the insurance press to make comment or give an opinion on claims related matters that arise from time to time.

Recently Modern Claims Manager magazine asked if he would expand on some of the more contentious issues that his team at Thompson & Bryan encounter.

The first article relates to the FCA’s announcement that it plans to investigate commercial claims handling. This caused quite a stir in the claims community but Paul is broadly in favour.

Reputations are at stake and as he points out, claims should be seen as an opportunity to create lifetime relationships with policyholders.

You can read the article in full by following this link

CILA invite T&B to present at Loss Adjusters seminars

Thompson and Bryan was pleased to be invited by the Chartered Institute of Loss Adjusters Property Special Interest Group, to present at seminars hosted by CILA in Leeds and Birmingham recently.

Team member Simon Jenkinson, a loss assessor with more than 20 years experience, represented us and his presentation on preparation of plant, machinery and contents claims was very well received.

The presentation focussed on all aspects of the claim preparation process, from recording evidence on site immediately following a fire or flood, through to working with other specialists such as decontamination companies and machinery manufacturers. He also covered the methodology we employ for presenting a fully quantified claim.

The event was viewed as a great success, with CILA commenting:

“We are pleased that Thompson & Bryan agreed to participate in this event. It was interesting to learn more about how professional loss assessors prepare claims. Our members have given very positive feedback about the presentation and its content.”

Thompson & Bryan Managing Director Paul Lawrence added:

“This was a great opportunity for us to share our knowledge and expertise and to demonstrate the diligence and attention to detail that we apply when dealing with claims on behalf of our clients. Many adjusters attending the event have worked with us in the past and therefore have experience of the quality of our claims presentations, but for those not familiar with our work it hopefully demonstrated the added value we bring.

"Our comprehensive and detailed claim presentations not only secure the best outcome for the policyholder but also make validation of the claim for the insurer more straightforward, thus expediting the whole process.”

More information

If you’d like further information about preparing and negotiating the optimum claim settlement, contact our office on 0208 446 6662.

Royal British Legion recruits T&B

The Royal British Legion has appointed Thompson & Bryan to manage the claim following a major fire on the 15th March at their premises in Hounslow.

T&B are no strangers to the Royal British Legion having represented them on numerous claims in the past, so we were pleased that the club committee officers decided to call us immediately.

The fire started in an adjacent property and spread rapidly, completely destroying large parts of the Legion Club. Due to the severity of the fire the local authority erected scaffolding and protective fencing around the building, which prevented anyone accessing the interior of the club for almost two weeks.

Our team are working closely with the club committee to prepare the schedules of claim and loss calculations, as well as exploring potential avenues for setting up temporary facilities for the club members.

The final cost to return permanent facilities to members is likely to run well into six figures and we will keep you informed as the claim progresses.

Client comment

“This is a very difficult time for all involved with Hounslow RBL. We are very pleased to have Thompson & Bryan acting for us to assist and support us through this complex process. As you might expect, none of us on the club committee have ever had to confront a major problem such as this before and we are already seeing the benefit of having experts on our side.”

DAS Loss Assist appoint T&B to Leeds laundry fire

DAS appointed T&B in February 2014 to deal with an extensive fire claim on behalf of the policyholder under their Loss Assist claims fees scheme.

Initial work

We attended site within 24 hours and began the process of detailing damage to equipment and customer property. We discussed with the insured the business interruption cover available under the policy and alternatives they might consider to help them retain their customer base, including sub-contracting work to other laundries.

Potential indemnity issues

Following a meeting with the insurer it became clear that there were issues within the Statement of Fact provided by the insured that they wanted to investigate further, which could result in policy liability being denied.

The additional investigations included appointing a forensic scientist to establish the cause of the fire. This work involved taking statements from employees and interrogating the alarm and CCTV footage from the night of the fire. As these investigations progressed it became clear that the cause of the fire could result in the insured being in breach of policy conditions.

Quick action

We were determined to make sure that the insurer took into account mitigating factors that were in danger of being ignored.

We advised the client to instruct their own firm of forensic scientists and through our extensive network were able to recommend a suitable firm. The scientist conducted his investigation into the fire, which included analysis of the conclusions produced by the insurer’s forensic team and a review of the statements and CCTV recording.

Our scientist’s report concluded that the cause of the fire could not be disputed. It also raised a number of issues that could affect the implication of the policy requirements and whether insurers could rely on these to deny policy liability.

Throughout this process we maintained a constant dialogue with the client’s insurance broker, keeping them up to date with all the developments. This enabled the broker to make separate representations directly to insurers in support of the policyholder.

The result

Following the submission of our findings to the loss adjuster and after further negotiations, the insurer agreed to accept liability and deal with the claim under the terms of the policy.

This enabled us to immediately negotiate a substantial interim payment for our client and agree the machinery replacement costs so that the orders for new equipment could be placed quickly.

Summary

Without professional help the client would have struggled to reach a settlement with insurers. The combined efforts of the forensic scientist, broker and T&B, working in a coordinated way culminated in a positive result being reached.

The client was very impressed that we had access to similar professions as those appointed by insurers, which is one of the reasons why special praise must go to the client for having the foresight to purchase a DAS claims fees insurance policy from their broker.

Client comment

 "From the first phone call and our initial first meeting I knew I had a formidable team representing me. The quality of the advice and manner in which it was given filled me with confidence. Not knowing if the insurance were going to accept liability was so frustrating, but John Leivers remained calm throughout, which really helped me to remain positive about the final outcome of my claim.

"He is a very shrewd negotiator and I am so pleased he was on my side. I cannot praise John Leivers and Thompson and Bryan enough.

"The £40 premium I paid for my claims fees policy is, without a doubt the best £40 I have ever spent!”

T&B Managing Director Paul Lawrence in the news

Paul Lawrence was asked to comment on the flooding debate recently following the announcement by the Prime Minister of a £10 million fund to help small businesses.

Thompson & Bryan is well placed to offer an opinion as, in addition to our other work, we provide the loss adjusting services for DAS Loss Assist policyholders.

Paul reflected on how the industry can help going forward and the first crucial steps that should be followed after a flood to prevent adversely affecting an insurance claim. You can read the full article by following this link

T&B support broker on multi-million pound warehouse fire

We were recently appointed by Robinson Buckley Insurance Brokers following a major fire to one of their client’s premises in Newport Pagnell.

The incident

On 15th January 2014 a major fire destroyed the distribution warehouse and offices of Coolectric Limited in Newport Pagnell. Coolectric are the sole UK importer and distributor of the prestige range of Liebherr refrigeration products.

The fire started around lunchtime and developed rapidly. The building and everything inside it was completely destroyed. Such was the intensity of the fire that the fire brigade was unable to do much more than contain the fire within the building. Thankfully, all personnel were evacuated safely and no injuries were reported.

Our support

The claim is still in its relatively early stages and our specialist technical team are heavily involved in preparing comprehensive details of claim. Site surveys have been undertaken and detailed evidence of the property damage has been recorded.

Our major loss team, along with Robinson Buckley’s claims representatives, were on site within 24 hours of the incident to provide immediate advice and support to the client. Following in-depth negotiations with the insurer and their loss adjusters, policy liability was secured in little over a week and a substantial interim payment secured shortly after. This enabled the company to implement loss mitigation and business continuity plans quickly and effectively.

This meant that in less than two weeks after the fire Coolectric was operating from a temporary warehouse facility and receiving and dispatching stock almost as normal. In further negotiations with Liebherr, Coolectric managed to source replacement stock to help mitigate the business interruption losses.

We will continue to provide valuable support to Robinson Buckley and their client until the final settlement is completed.

Can we help you?

For further information on how Thompson & Bryan can support insurance brokers and policyholders, especially in relation to commercial, domestic property damage and business interruption claims, contact the office on 0208 446 6662.

Free major loss support service

Major claims are stressful. Your job is to support your clients and how you manage the first 24 hours is critical. We have introduced a new support service that can help.

Free major loss support service 

We will provide on-site support to brokers and clients suffering major and complex losses during the first 24 hours post incident on a ‘no obligation basis’.

Our support will include:

• Site meeting with you, the client and loss adjuster
• Initial assessment of damage and provision of confidential advice regarding loss mitigation, business recovery and claim
• Review of insurance policy coverage and advice on cover option extensions and limitations
• Advice on policy liability issues, warranties, endorsements etc.

There is no obligation to appoint us for the remainder of the claim and there will be no charge for the work we undertake during the first 24 hours post incident.

Why are we doing this?

A range of critical issues need to be addressed in the first 24 hours of an incident and we want to demonstrate in a live environment how we can add value to the service you provide to your clients.
Obviously, we hope to create a good impression and lasting relationship with you so that you might consider us if you need support on future claims - but this initial service is absolutely free.

More information

If you’d like more information about this offer, or help on anything claims related, contact one of the team today. Click here for all the contact information.

Can you demonstrate your TCF credentials to the regulator?

The advice you give and the recommendations you make as a broker come into sharp focus when a claim is made and any deficiencies stick out like a sore thumb. We have developed a new service that can help you “stress test” your policy recommendations.

What is stress testing?

We review a random sample of policyholder insurance portfolios to examine how the cover would stand up in the event of a loss.

What’s included in each review? 

• Comprehensive review of existing policy contracts, schedules and other relevant documentation
• Consideration of extent and limitations of policy cover
• Identification of any potential deficiencies or limitations in cover
• Critical analysis and recommendation of any amendments that might benefit the broker client

The emphasis of our reviews is not to find fault with your recommendations but to offer you a view, or if you prefer audit, from a claims perspective.

Benefits

• You will be able to demonstrate to the regulator that you are serious about the quality of advice you offer to clients
• The reviews may highlight additional areas of coverage your clients may benefit from
• You may reduce the risk of claims disputes

We can offer this service as a one-off exercise or as part of a more systematic review.

More information

If you’d like more information about this offer or help on anything claims related contact one of the team today. Click here for all the contact information.

Hull flood victims benefit from claims fee scheme

A combination of high tides and strong winds caused severe flooding throughout Hull and the surrounding areas in early December.

Below are a few examples of the businesses we managed to help and support. In every case we were on-site within 24 hours of the flooding.

Humber Properties Ltd, Hull

Humber Properties are landlord to a variety of businesses and the floods affected many of their tenants occupying office space on the ground and first floors.

The ground floor, exterior yards and parking areas were flooded with up to 12 inches of water that left behind a residue of mud and silt.

Because of the extensive damage Humber Properties faced considerable loss of rental income from tenants who had been forced to evacuate and relocate.

Action Taken

We worked with Humber Properties to produce a plan of action that immediately mitigated further losses. Generators were hired to provide electricity for the first floor tenants, initial cleaning and stripping out was undertaken and dryers were installed.

Surveyors were appointed quickly and a schedule of repairs have been produced and sent out to tender.

M H Industrial Ltd, Hull

Water and mud residue caused considerable damage to the Company’s offices, warehouse and manufacturing areas as the floods receded.

Damage to machinery had an immediate and serious impact on the business and damage to their forklift truck fleet restricted their ability to rent them out to customers. Further extensive damage to the company’s ground floor hit their computer installations, including the main server, which was rendered inoperative.

Action Taken

Our first task was to quickly evaluate the losses by accurately detailing the extent of damage to machinery and equipment. To get the office back in action we quickly organised sub-contractors to install temporary computer systems. This element of the claim was agreed with insurers within 5 days.

Jenko Ltd, Hull

In this incident most of the damage from the water and mud residue was to the company’s offices, including computer networks, printing machines and paper and ink stocks, the latter being particularly susceptible to damp conditions.

Action Taken

To help our client deal with the immediate issues of replacing equipment we quickly reached an agreement on interim payments with the insurer’s adjusters. We were able to do this successfully by accurately assessing and agreeing the extent of the damage.
In parallel a specialist damage restoration company was instructed to carry out removal of the remaining water and install drying equipment. A surveyor was then appointed to identify the damage to the building and produce a schedule of repairs required.

Summary

The only thing our clients had in common was geography. Despite damage being caused by the same event these examples prove the frequently repeated phrase: ‘every claim is different.’

We really understand that and at Thompson & Bryan we get to work fast, prioritise quickly and concentrate on the things that are important to the client. Every claim may be different but our proactive approach never changes.

What to do next?

If you think we can help with a claim why not contact us today.

T&B negotiate big fire damage settlement for Kent firm

A major fire effectively destroyed a Kent company's finished goods storage warehouse and caused extensive collateral damage to a neighbouring processing unit on Monday, August 8, 2011.

The severe fire damage to buildings, stock and machinery had a major impact on the operation of PPR Wipag's automotive plastics recycling facility, causing a total loss in excess of £500,000.

Post Fire

Immediate Actions

Thompson & Bryan secured instructions and attended the site the same day to meet the insured, gain an initial appraisal of the nature of their business and the extent of damage caused by the fire.

Immediate discussions focussed on loss mitigation and the nature of their manufacturing processes to identify how the business could be maintained to service its customer base.

Our team of qualified and experienced staff worked continuously with the insured and their staff from day one to ensure the business continued as far as was practically and economically possible during the indemnity period through to agreement of the final claim circa 15 months later.

Settlement

The claim was ultimately settled on an overall negotiated basis to the benefit of the policy holder enabling them the flexibility and control to finalise the reinstatement of the affected property and their manufacturing processes.

Buildings - The insured was able to invest their insurance settlement in not only rebuilding but re-designing the layout of their manufacturing facility to improve efficiency for longer term benefit.

Plant and Machinery - The insured’s innovative bespoke process plant was reinstated to current specification and standards on a new for old basis as per the policy coverage. The insured was able to review and improve on their operational efficiencies as part of the reinstatement process for the longer term benefit and improved profitability.

Stock - Extensive analysis was required in order to ascertain the true cost value of the stock given that the manufacturing process entailed low cost raw material supply and extensive resource input in the manufacturing process.

The reinstated premises

Business Interruption - Critically, the loss mitigation measures employed enabled the majority of customer orders to be processed during the indemnity period, albeit at a substantial incremental cost.  Detailed calculations and analysis were undertaken to ensure the optimum recovery was achieved under the policy given the presence of both increased costs of working and additional costs of working cover.

Detailed analysis and calculations were performed in light of the apparent significant growth trend in the business.  A forecast of the sales was built up throughout the 12 month indemnity period to ensure the optimum recovery was achieved under the policy.

The Thompson & Bryan team involved in the PPR Wipag claim comprised:

• Simon Jenkinson, ACII Chartered Insurance Practitioner
• Frank Hughes, FCII Chartered Insurance Practitioner 
• Rajen Rajput, BA (Hons) Financial Analyst.

Client comment

"The best decision we have ever made (post fire) in our business, was to engage the services of Thompson & Bryan! We are certain, that without their expertise and in depth knowledge of the insurance industry, including the mine field of pitfalls and complications that come with any substantial claim, we would never have reached the level of recovery achieved by T&B!

"We were especially impressed by Simon Jenkinson, whose “attention to detail” in every aspect of the claim was nothing less than astounding! This, combined with his ability to very quickly, fully understand, the incredibly complicated way in which our recycling business functions, made Simon the perfect Practitioner for this claim."

Further Information 

www.pprwipag.com

Spalding fire leads to £2 million loss for orchid grower

On December 16, 2012 a major fire destroyed a large proportion of the V-Flora (UK) Ltd's commercial glasshouse and rendered the remaining areas unusable.

The glasshouse contained machinery and equipment, irrigation, heating and ventilation systems, together with over 900,000 orchid plants. The plants were in various stages of growth but none survived the fire. V-Flora also rented out part of the glasshouse to a supplier of plants to a major supermarket chain.

Action Taken

The client was unhappy with the performance of the assessor who was initially instructed to deal with the claim, and subsequently appointed Thompson & Bryan. We immediately began working with V-Flora's management team to advise on mitigation measures and to quantify the claim.

Using accounting and growing records, the value of the stock was calculated and agreed with the loss adjuster.

Engineers, surveyors and glasshouse experts were appointed to ascertain the damage and the costs associated with repairing and rebuilding the premises. Repairs were undertaken to the areas rented by the tenant in order that these could be re-occupied and rental income maintained.

A supply of plants from Taiwan was established that could be temporarily stored in glasshouses in Holland and sold on to customers. Repairs were also carried out to two of the areas least damaged, allowing V-Flora to take deliveries of plants and begin supplying customers again from the UK.

Outcome

Thompson & Bryan presented the loss adjuster with fully documented and supported Material Damage and Business Interruption claims. This allowed  us to negotiate a seven figure cash settlement that gave V-Flora the freedom to reinstate in a manner that would suit their future plans.

Client Comment

"I would like to express our complete satisfaction with the services you provided in negotiating a seven-figure settlement following a fire at our premises.

"Throughout the team displayed the highest levels of professionalism and in particular I would like to thank John Leivers and David Kelly. Their ability to view the claim from our perspective and hard work made sure we received a fair settlement as quickly as possible. 

"I wouldn’t hesitate to recommend Thompson & Bryan."

Jane Wang
V-Flora (UK) Ltd

MoJ Jackson Reforms Summary

The Jackson Review of civil litigation relating to low value injury claims came into force in April. Intended to bring better balance to the system the reforms represent a step change to the personal injuries legal framework. We have produced a summary of the changes that will have the biggest impact on your clients.

The aims of the reforms are to bring more balance to the civil litigation system by:

• Addressing the growing compensation culture 
• Creating an environment where claims costs savings will feed into lower premiums
• Delivering lawyers costs that are more proportionate 

The changes that will be more apparent to consumers are:

After the Event legal expense premiums will not be recoverable 
After the Event insurance was the preferred method by which no-win no-fee solicitors were able to offer these services. It was used to underwrite their costs should the litigation they undertook on behalf of a consumer fail. Consumers are likely to see fewer firms offering no-win no-fee services - indeed many have already exited the market.

Banning referral fees 
The payment of referral fees was endemic before the changes. In the new environment referral fees will no longer be legal.

Limits have also been placed on claims quantum, particularly with regard to injuries such as whiplash.

How will these changes affect your clients?
The most important change for claimants is the requirement that they provide fast and accurate claims notifications, including:

• Immediate notification of claims or intention to claim 
• Immediate and on-going assistance with liability investigations
• A need to provide accurate and complete information
• Production of documentation within shorter timescales 

Summary
The key objective of these reforms is to speed up claims settlements and reduce stress for the claimant. In the longer term all insurance buyers should benefit from reduced fraud and extraneous legal fees savings feed through to more competitive insurance premiums.

Car dealership up in flames

A major fire at a main car dealership in the East Midlands destroyed its workshop and repair centre and caused extensive smoke damage to the office areas, parts storage areas and new and used vehicle stock. A team from T&B was assigned to manage the claim.

Coordination
An initial meeting was organised with all the organisations affected by the fire including the policyholder, their landlord, their insurance broker, accountant and the insurer’s loss adjuster. The key objective of the meeting was to establish the circumstances of the incident, identify any immediate issues that needed to be resolved and to agree a plan of action.

Buildings
The policyholder did not own the premises but was responsible for insuring them. So, with the support and assistance of the landlord, we arranged for engineers and surveyors to attend the site and produce an initial strip out and decontamination schedule together with a further schedule for the reinstatement of the premises.

The main issue relating to the building was damage to the asbestos roof and we arranged for suitable contractors to be instructed to analyse the extent of the contamination and to report on the most effective ways to manage and remove the asbestos debris.

Machinery and plant
Our team prepared an itemised inventory of damaged and destroyed machinery, hand tools, diagnostic equipment and office contents. This was checked on site with the loss adjuster and a detailed and supported schedule of claim was submitted.

Stock and work in progress
Toxic smoke deposits and asbestos debris had contaminated stock so it was quickly agreed with the adjusters that none of the parts stock could be used on vehicles. A list was prepared and checked on site with the adjuster.

Vehicle stock
A large number of new and high value second hand vehicles were damaged by the fire and contaminated by asbestos. We arranged for these vehicles to be removed to offsite storage and negotiated the value of these with the insurer.

Business interruption
The extent of the fire damage was such that it was impossible for the business to continue trading from the site. The policyholder located temporary premises to enable them to continue to trade and we advised them as to how the business interruption section of their policy would support them with this aspect of their claim.

Summary
It was clear that the claim would continue beyond the end of the 12 month indemnity period and therefore a projected business interruption claim was produced and a negotiated settlement agreed on all aspects of the claim, including the building. This ensured that the policyholder received considerable sums in advance and had the flexibility to utilise these sums in the most advantageous way for their business.

What to do next?
If you think we can help you with a claim why not contact us today.

T&B appointed to multi-million pound fire

A printed circuit board manufacturer based in eastern England suffered a multi-million pound loss following a fire that destroyed its main production unit and caused extensive smoke and water damage to the remainder of the premises.

Major loss team
Thompson & Bryan’s major loss team were assigned to manage the claim and they spent several days on site with the policyholder and other interested parties in the immediate aftermath to discuss how business continuity might best be achieved and to also formulate a strategy for collating all the information required to support the insurance claim.

The company had suffered a major fire previously and encountered significant difficulties in resolving its claim and recovering the business so we were immediately under pressure to demonstrate our professionalism. We set about quantifying the claim.

Buildings
Working alongside a team of engineers and surveyors, we coordinated the demolition and clearance of the most damaged unit. We also coordinated the production of all the necessary specifications and other information to support the reinstatement works required to the remaining buildings on site.

Machinery and plant
Our main task was to produce an inventory of damaged and destroyed production machinery, computer equipment and general contents. We researched new for old replacement prices and produced a detailed and fully supported schedule of claim.

Stock and work in progress
Due to the extent and variety of stock, including raw materials and work in progress, in the premises at the time of the loss, we negotiated an agreement that the best way to quantify the loss was to carry out an accounting reconciliation based on the policyholder’s financial records.

The calculations were prepared in various ways to provide a ‘sense check’ on the values produced and this was then used as the basis for the stock claim submission.

Business interruption
Following our initial discussions with the policyholder regarding business continuity, it was agreed that subcontracting customer orders was the only viable means of maintaining short term order fulfilment. We maintained an electronic record of every customer order placed, its value, subcontract cost and BAU production cost to accurately calculate the value of claim that would be submitted under the ‘increased costs’ section of the policy.

We also analysed pre and post incident turnover to prepare calculations to support the loss of gross profit calculation using the policyholder’s financial information and in close liaison with their accountants. A detailed and comprehensive submission of data and analyses were submitted to insurers in support of all aspects of the business interruption loss including a projection of the anticipated impact for the full 12 month maximum indemnity period on the policy.

Outcome
We negotiated an early cash settlement, which provided the business owners with the flexibility to reinstate in a way that best suited them and in a time frame that best met their long term requirements.

Summary
The management of the company were extremely pleased with the way we applied our resources and expertise so that they didn’t have to be involved in the day-to-day direction and management of the claim. This enabled them to concentrate on their business and their clients.

What to do next?
If you think we can help you with a claim why not contact us today.

Leading hair loss clinic call on T&B

Water escaping overnight from property above a leading hair loss clinic in central London created havoc by rendering electrics and IT useless as well as causing extensive damage to the consultancy area’s flooring, walls and ceilings. Thompson and Bryan were on hand within hours to help the policyholder.

Mitigating loss
The first task was to organise emergency repairs so that the premises could re-open while a more extensive plan of action, for what was going to be an extensive refurbishment, could be organised.

Quantifying loss
Discussions were held with the company directors and their accountant to consider:

• The immediate effect on the business, including the associated financial losses that might be incurred for several days while emergency repairs were undertaken
• The ongoing effect on the business and expected financial losses of undertaking consultations in less than satisfactory conditions
• The practicalities and costs of undertaking the extensive refurbishment required outside of normal business hours so that there would be minimum disruption to ongoing client consultations

We also liaised closely with the policyholder’s preferred building surveyor and oversaw the production of a detailed refurbishment schedule that was issued to a selection of tendering contractors.

Upon receipt of the tenders, agreement was reached with both the clinic’s insurers and their landlord’s insurers on claim value and apportionment of the damage.

Outcome
Our in-depth financial analysis enabled us to negotiate a six figure settlement, based partially on forecast losses during the future refurbishment period that allowed the clinic to undertake the refurbishment at a convenient date in the future.

Summary
The directors of the clinic were very happy with the way that we focussed on the practical issues that needed to be addressed, such as immediate repairs to mitigate losses, as well as the more complex financial analysis. Our support meant that the clinic was able to concentrate on maintaining and growing its rapidly expanding business.

What to do next?
If you think we can help you with a claim why not contact us today.

Post Holiday Blues

Our client returned home from a trip overseas to be confronted by water pouring through her ceiling.

While she had been away the country had been gripped in a cold snap causing a water pipe to burst in her loft. Over several days a significant amount of water had escaped, soaking through the first floor bedrooms, ground floor living areas and kitchen. The water had also caused some of the areas of the ceiling to collapse.

Our task was to ensure that the policyholder’s property was returned to its pre-damage condition as quickly as possible.

Alternative accommodation
We quickly established that the extent of the damage had rendered the policyholder’s home uninhabitable and emergency hotel accommodation was quickly arranged. This was soon substituted for a more convenient long-term serviced flat rental. Costs for alternative accommodation were agreed with her insurers very quickly.

Asbestos issues
The two bedroom semi-detached property was built in the 1950s. Because of its age and the areas of ceiling that had been brought down by the water, T&B arranged for the appointment of asbestos contractors to undertake sample testing.

In addition, an experienced building surveyor was appointed using T&B’s network of trusted professionals to prepare a detailed Schedule of Works. The Schedule had two objectives, firstly as a document that could be agreed by all parties and to be used as the basis of a competitive tendering exercise with contractors.

Contents
We established that the water damage had disturbed Asbestos Containing Materials (ACMs) and after considerable discussion and negotiation we agreed with all parties that the most sensible course of action would be for the contents to be removed and safely disposed of. T&B undertook a detailed inventory of these items and researched replacement costs for them.

Outcome
We made sure that the policyholder’s property was allowed to fully dry out, ACMs removed and repair and reinstatement successfully undertaken. We also managed to argue for the use of a building contractor preferred by the policyholder. All damaged and contaminated contents were replaced on a ‘new for old’ basis and the policyholder returned to the property some six months later.

Summary
This case, as with many of this type, was more complicated than it initially seemed. The asbestos discovery added an extra dimension, but, by concentrating on the policyholder’s needs and by accurately quantifying the costs, the policyholder was able to return home quickly.

What to do next?
If you think we can help you with a claim why not contact us today.

T&B called up to help after ex Bomber Command hangar fire

When we got the call to help with a major fire claim at an aircraft hangar situated on an ex-RAF base in Lincolnshire that was once used by Bomber Command we scrambled into action.

The extent of the damage
The initial fire in the hangar, which had also been used previously as a filming location for a major Hollywood film, was fuelled by oil from an electrical transformer. The burning oil helped to accelerate the spread of the fire up into the timber roof lining of the hangar. The resulting damage from the fire destroyed two thirds of the asbestos clad roof, together with the electrical installation and a steam heating system used to keep aircraft at operating temperature during the Cold War. Manufacturing equipment used by the policyholder was also damaged together with finished stock and work in progress.

Quantify loss
Our initial objective, after we had organised and coordinated work to make the building safe (using a structural engineer), was to accurately quantify the full extent and cost of the damage. Because of worries about the roof a second, a more detailed engineering inspection was arranged to ascertain the extent of the damage and the engineer was instructed to produce calculations and drawings detailing the roof structure and the options for repairs or replacement if necessary.

We then organised for a surveyor to be appointed to prepare a schedule of repairs for the entire building, which also incorporated the engineer’s recommendations on the roof. This scope of works was agreed with the loss adjuster and a complete tender document issued to contractors for pricing.

At the same time, schedules of machinery and stock were prepared and checked on site with the adjuster. Our team then priced these lists to fully support the claims issued to the adjuster.

Outcome
An advance settlement was agreed for all aspects of the claim, which gave our client the flexibility to undertake the repairs to their specification and some months later the work to the hangar was completed.

Summary
Speed and quantification are critical aspects of any claim and as can been seen with this claim, detailed and accurate assessments by professionals in their respective fields lead to faster settlements.

What to do next?
If you think we can help you with a claim why not contact us today.

New Owner for Leading Claims Specialist Thompson & Bryan

Press Release: London, 15 April, 2013

Leading claims specialist Thompson & Bryan has been acquired by market expert Paul Lawrence, it was announced today.

Thompson & Bryan was established in 1867 and is widely acknowledged as being the leader in the claims industry when it comes to working with insurance brokers and their customers to ensure that claims are prepared correctly and settled in a fair and fuss-free way.

Following an intractable Pension deficit the business went into administration last week and the intellectual property and work in progress has been acquired by Paul.

With the continued recession and soft market, many insurers have been tightening their belts and looking to minimise the amount they are prepared to pay. There has never been a greater need for the client to have a professional working on their behalf to ensure a fair outcome for all parties.

Thompson & Bryan had established themselves as true experts, particularly in areas such as business interruption which can be a minefield for brokers and clients alike. They have a reputation for being fair and thoughtful in their dealings with insurers. For many insurers and their adjusters, Thompson & Bryan is seen as the acceptable face of client claim.

Paul Lawrence has more than 30 years experience in the claims industry and is highly respected by brokers and insurers alike.

John Sims, former CEO at Lorega Limited said: “This is an ideal acquisition for Paul. Thompson & Bryan is highly professional and has a great brand name with brokers and Paul is simply the best in the market; I can only see the business going from strength to strength with Paul at the helm.”

Paul Lawrence said: “This was an opportunity I simply couldn’t turn down. This is a great business and a trusted brand that simply got into some unforeseen financial difficulties. There will need to be some changes to the structure of the business but moving forward the picture is all very positive.

“Our service charter will see us using qualified adjusters, charted accountants and other top professionals as required. I have always put the client and broker first and lived for great service, this will be our ethos. Every loss will be treated as the most important claim we have ever handled regardless of how big or small it might be. I am incredibly excited about this new dawn in the history of such a great company as Thompson & Bryan.’

For further information please contact:
Paul Lawrence
Tel : +44 (0)7941 111920
E-mail : paul-lawrence@thompsonandbryan.com


Notes to Editors

About Thompson and Bryan

J.G.Thompson & Co, the forerunner of Thompson & Bryan Limited, was founded by James Grafton Thompson in 1867. In its steady growth throughout the 19th and 20th centuries, the Company gradually expanded from a small office in Nottingham to the international organisation it has become today.

Thompson & Bryan had grown sufficiently to become heavily involved during the Second World War in the assessment and settlement of extensive bomb damage claims under the guidelines of the War Damage Commission. The overspill of work continued until well into the 1950s.

Thompson & Bryan’s versatile and expert services again became in great demand during the 1970s and 1980s in the assessment of bomb damage to property in Northern Ireland, dealing with the Compensation Agency to secure financial settlement on behalf of the applicants who suffered damage.

The Thompson & Bryan group of companies provides an unrivalled 24 hour service operating from seven major cities throughout the United Kingdom and Ireland. In spite of its expansion over the years, the group has never lost sight of the James Grafton Thompson tradition for providing the utmost in professional and personal service.

About Paul Lawrence

Paul has been a claims specialist working on behalf of customers for more than 30 years. He was originally part of the Harris group which later became Harris Balcombe. Paul left Harris Balcombe to set up his own adjusting and advocacy business, Commercial Claims Solutions. Paul deals with losses all over the world and is highly regarded by the broker market for his diligence and the ability to get a fair settlement for the client by working closely and thoughtfully with insurers and their loss adjusters.

Ted Baker v AXA and Others

This case demonstrates the importance of knowing exactly which insurance terms and condition are in place for a particular risk and the importance of brokers placing a client's risk correctly.

The Facts

Ted Baker pursued a claim against AXA asserting that they had cover for a claim under the terms and conditions of their commercial combined insurance policy. First they said that there was cover for the losses under the Theft section of the policy. They then argued that consequential losses were covered under the terms of the Business Interruption section of the policy.

Over a number of years the retailer had been the victim of thefts by one of its employees who acted in collusion with delivery drivers. The retailer asserted that by reason of a standard form theft extension clause, cover was in place for this type of theft.

The claim was resisted by AXA on several counts. They alleged that theft by an employee was not covered under the terms of the policy as a matter of construction and that if "surreptitious theft" by an employee were to be covered by an insurance policy then it would only to be covered under the terms of a fidelity policy.

Other defences were also raised relating to mistake, rectification and estoppel. There were also co-insurers involved and they ran parallel defences but also alleged non-disclosure by the broker of the fact that this was unusual cover and that it ought to have been disclosed by the broker.

The Judgement

Despite 21 witnesses being called, the vast majority by the Defendants, the court held that the plain and simple words used in the theft extension clause meant that non forcible and violent theft by an employee was covered under the terms of the insurance policy and that the retailer was covered for its direct losses. It did not go against business common sense as alleged by the Defendants.

Similarly the Defendants could not allege that market practice was to the effect that this kind of cover was not available. The Defendants had attempted to give such evidence both with lay witnesses and with their expert. The judge found that the words used in the policy could not be displaced by any such allegation.

Similarly the Defendants attempted to argue that the parties were trying to replicate the cover formerly given by the defunct Independent Insurance Company. Again the court held that this could not displace the actual terms and conditions of the policy.

On the basis of the policy terms it was therefore found that Business Interruption loss was similarly covered under the terms of the policy. An exclusion clause based on "fraud and dishonesty" was held not to apply.

The court held that there were no "shared assumptions" and therefore the Defendants plea of estoppel also failed.

The Defendant's allegations of non-disclosure and misrepresentation on the part of the retailer's brokers also failed

Comment

The Judgement demonstrates that an insurance company faces an uphill task in trying to persuade a court that despite what a policy says, the terms did not represent what the parties wanted. In this case the majority of the Defendants' arguments were dismissed "in limine", in effect the Defendants' cases did not get over the first hurdle. Quite simply if the terms and conditions of a policy make it clear what is covered, the court will hold that to be the case.

You can read this case study in full here:

High Court Decisions - Baker v Axa


*We’d like to offer a special thank you to Nichola Evans at Browne & Jacobsen for providing a summary of this legal case study. 

Information flow between parties is critical

Ground Gilbey v Jardine Lloyd Thompson UK Limited [2011]

Over the past few years we have seen a number of important decisions involving the role of insurance brokers and how critical it is that there is a flow of information between the parties. This case emphasises that and the consequences when people get it wrong.

Fact

This claim relates to a fire at Camden Market and was brought by the owner of Camden Market.

A survey of the premises was carried out in 2005 and identified the use of LPG portable heating appliances. The Claimant duly banned their use but stallholders continued to use them. On the renewal of the insurance policy in 2007 the policy contained a new endorsement – a survey condition requiring completion of all risk improvements. The Claimant alleged that this condition was not brought to their attention.

On 9 February 2008 a fire broke out at Camden Market. The owners made a claim under the terms of the insurance policy. The policy condition was raised by the insurers. The owners settled their insurance claim for £3.825M which represented approximately 70% of the claim leaving a shortfall of approximately £1.7M. The Claimant sought to recover the shortfall from their insurance brokers.

Findings

The court found that the brokers had acted in breach of duty in three respects:

• A failure to find a policy allowing the use of portable heaters.
• Failure to give advice on the policy condition.
• A failure to pass on a critical email in relation to the removal of portable heaters to the owners.

The Claimant was able to recover its losses in full and the court would not entertain an allegation that there had been any contributory negligence by the owners before the fire.

Comment

This case again shows the importance of essential information being passed between insureds and insurers and that this duty extends to the parties’ agents. When difficulties emerge in the context of a claim, it is important to investigate every angle, consider the documentation and investigate as to whether all information has been communicated to the parties.

A little risk management goes a long way

We are heading for another bout of poor weather so we thought we’d pull together some tips for you to pass on to your clients to help them avoid unnecessary claims.

There is no doubt icy conditions produce more claims for slips and trips than at any other time of the year so if your clients operate from a premises they need to be vigilant to the potential risks to visitors (and employees) of being injured in icy conditions.

The Issue

Even relatively short bursts of poor weather and low temperatures can produce hazardous conditions underfoot that last for many days, and sometimes weeks after the initial event.

Most commercial buildings have some external areas that are used by employees, deliveries or the general public and building owners or tenants have an obligation under health and safety legislation to keep every pedestrian traffic route within the premises free from substances that may cause someone to slip, trip or fall.

The Solution

If a business operates from a premises they should have a plan to deal with the problem should it arise. Consideration should be given to the following when formulating your plan:

Resources
Businesses should know what manpower and equipment they are likely to have available should bad weather strike. Practically how many staff will be available (usually needed early morning) to clear areas and spread grit? Do they have sufficient equipment readily available on site, including sufficient grit and the means to transport it around the site?

Prioritise
Businesses need to decide which areas should be cleared for the premises to operate safely. Priority should be given to the building’s entrances, including goods and visitor entrances as well as staff entrances. It may be impractical to keep all car parks and areas clear so decide what needs to be done to ensure untreated areas are not used.

Maintain
Everyone in the business should be aware of their responsibilities within the plan. Make sure they have a plan to maintain the areas that have been cleared so that they do not re-freeze over.

Communicate
Employees should be informed of the bad weather plan in advance and be aware of the areas that will be prioritised for clearing so that they know what to expect when they arrive for work. Signs at the entrance to public areas should be used advising visitors of untreated areas. It should be made clear that they use untreated areas at their own risk.

Record
A premises specific risk assessment for operating the site in bad weather should be carried out and recorded.