Property Damage Claims Process
SOP #:
RMSCR SOP 300-01 Effective Date:
03.30.2018
Revision Date:
1.1.2022
Department: Legal
Category:
Risk Management, Safety, and Claims Reporting
Scope :
To provide resources and instructions for the property damage claims process.
CATEGORY 1: LOSSES GREATER THAN THE INSURANCE DEDUCTIBLE OF $250,000
• Submit the Property Damage Incident Report Form to the following: VP of Operations, Regional Director of Finance, VP of Risk Management, Director of Facilities, and SVP of Capital Investment Strategies • The VP of Risk Management will submit the loss to the designated claims adjuster for assignment and to the insurance broker for reporting to insurance carriers. • The GM submits a Request for Capital once the expected dollar amount of damages has been assessed. o Submit a Capital RFC form in DocStar by selecting I-2299 Insurance Claim Over Deductible In the PROJECT DESCRIPTION , include the Date of Loss along with incident description (ex. DOL-1/20/2021: Tub overflow; pipe break water damage ; etc.). In the EXPLANATION FOR REQUEST section, provide brief details of damage and repairs needed. o Attach the Property Damage Incident Report Form with the RFC. o The Project Coordinators will route to the VPO, SVP Capital Finance and Risk Management for final approval. o The RFC originator will receive a confirmation via email with a project number to use for processing future invoices. o All invoices are to be submitted to capexpayables@atriumhospitality.com with the project number provided for proper allocation. For those insured claims in the 2021 calendar year, the project number will follow Hotel Code – Loan Pool Number – I-2299 – Contract Number. • If necessary, the SVP of Capital Investment Strategies will designate an Atrium Project Manager to work with the property to oversee and coordinate repair to ensure compliance with our standard construction contract process. • The General Manager will be the designated on-site contact to work with the insurance adjuster to coordinate the inspection of damages and work with the Project Manager and contractors to secure and execute the work. • The insurance adjuster will work with the Project Manager and building consultants to prepare a detailed scope of work and repair estimate to which all parties agree. If the estimated loss total is greater than $250K, the VP of Risk Management will request an advance payment. • The VP of Risk Management will facilitate regularly scheduled calls to monitor the restoration process. Calls will include, as appropriate, the Project Manager, GM, Chief Engineer, Director of Facilities, insurance adjuster, insurance broker, and building consultant. A progress report, generated by the VP of Risk Management with input from relevant parties, will then be submitted to the President, VPO, SVP of Finance, SVP of Capital Investment Strategies, Director of Facilities and Atrium Holding Company’s VP of Finance. • Repair and FF&E Invoices: o Code to Cost Recovery Expense (091-80820000) and the insurance project code number assigned o Submit via email to capexpayables@atriumhospitality.com. Accounts Payable will then route the invoices via DocStar to the designated approvers. o Repair and extra expense invoices will be approved by the GM, Director of Facilities and VP of Risk Management. o Invoices must include executed partial or final lien waivers. o For FF&E invoices, Project Coordinators will add the GM, Director of Facilities and VP of Risk Management to the DocStar approval workflow. • The Capital Department will provide a monthly property loss invoice ledger to the VP of Risk Management as a record of all related expenses and allow for proper reconciliation and claim submission for insurance recovery. • In addition, the property will maintain a schedule of extra expenses such as labor, comps, guest refunds, and other operational expenses for insurance claim tracking or P&L variance explanation. • Upon completion of work, the GM shall submit the package of damages to the insurance adjuster and VP of Risk Management for reconciliation. The VP of Risk Management will work with the insurance adjuster to finalize the claim. • The VP of Risk Management will monitor reimbursement from the carriers and forward checks to Accounting and notify Capital Accounting via email when an insurance project is complete.
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