New information is slowly filtering out of China about the Tianjin explosion and many companies are trying to figure out how their operations and business income will be affected. As the proverbial dust is settling, the one certainty is that a critical cog in the international supply chain wheel has been crippled and will not likely be fully functional for some time. The insurance implications are expected to be substantial according to Reuters analyst Arian van Veen, “It is still very early to determine the level of insured losses, but the event is likely to be large with initial insured loss estimates of $1-$1.5 billion and a large number of insurance companies affected,"
If you expect to have a loss stemming from Tianjin, here are some tips that may be helpful:
Communicate with your claims team, from brokers to forensic accountants, so they are ready to respond. They also may have some information you do not have as they likely are speaking with many other companies in the area. Review your policy for coverage availability and/or limitations. What are the details of your CBI coverage, ingress/egress, civil authority? Discuss potential claim strategies and prepare internally for documenting your claim.
Now is the time to communicate and gather information as best you can. Your internal groups, from supply chain to finance, need to know you are a resource for them, but you need to stay in the loop with regular updates on what effects the company is feeling. The more information you can gather right now, the better positioned you will be when discussing with your carriers how your policy applies to the loss.
You are likely in contact with the local adjuster regarding the possibility of a claim. Let them know that you are on top of things and that you’ll keep them informed. If information is requested be sure to maintain control of the information that is shared.