EXTRA EXPENSE Identify/Document AllAreas of Loss • Temporary facilities/rented equipment
• Temporary power, telecommunication, generators, etc. • Additional Refrigeration trucks to continue food service • Increased labor costs/inefficiencies • Estimated cost per item/area • Excess fuel usage and transportation costs (e.g., product trucked-in from other locations, additional freight costs) KEEP DETAILED DESCRIPTIONS Descriptions of work performed, services purchased, or materials consumed help the insurance adjuster visualize and evaluate the claim. Two types of descriptions are needed — general descriptions of work orders or cost centers used to gather claimable costs and specific descriptions of individual costs being claimed. Work order descriptions contained in authorization materials or periodic summaries are usually adequate. Descriptions of in-house labor charges may have to be prepared separately by supervisors or department heads. In-house labor must be fully documented by name, position, dates and times of applied work. If so, a system should be developed early to provide the necessary details. Descriptions of contractor charges and supplier invoices can usually be obtained from purchasingdocumentation. GATHER SUPPORTING DOCUMENTATION Claim presentations should include worksheet summaries and 100% documentation (including photos) and support for all claimed items. To do so, it is necessary to gather and segregate source documents at the time they are processed to eliminate duplication of effort. Electronic copies of all supporting documents should be placed in a separate file. Th e copy will be for the hotel’s permanent records, the other for later submission to the insurance carrier. Clearly categorize each item for reference purposes as you go to keep organized throughout the process to identify items if questions arise from the insurance carriers Understand the scope of theclaim. ADVANCE CLAIM PAYMENTS/PARTIAL PAYMENTS/FINAL PAYMENTS Is the property insured at the replacement cost, actual cash value or an alternate method?
Page 114
Made with FlippingBook. PDF to flipbook with ease