NEW YORK CITY—Guiding you through risks and potential underwriting perils, Lance J. Ewing of AIG provides his market-spanning insights. A recipient of the Risk Manager of the Year for Business Insurance and Risk Innovator of the Year awards, Ewing is an internationally recognized authority on insurance, risk management, crisis management and risk financing, among many other insurance and risk-related subjects. At AIG, he serves as the leader for Hospitality and Leisure, as well as the Real Estate Industry Practice Groups.

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Claims are a part of any commercial real estate business. Whether property, workers compensation, liability, discrimination or any variety of claims that occur it is necessary to always follow three risk management steps: Investigate, Evaluate and Resolve.

Following a claim of any kind it is best to start an investigation immediately. The sooner you begin gathering the facts and evidence of what happened, the sooner the claim can be evaluated. The investigation can be completed by internal and/or external personnel. Getting the who, what, where, when and how are key criteria for claims investigations. Documentation of the claim investigation is an important step. The use of internal or outside counsel is part of the investigation process.

Once the investigation is complete, the evaluation part begins. Questions such as is there insurance coverage? Is there a way to transfer this claim? Is there a contractual obligation to pay the claim? What is the causation? What is the actual damage or loss? How much should be reserved for the claim? The evaluation process needs these and other questions answered to move to the resolution step.

Claim resolution normally falls into one of five areas:

Payment in full;
a negotiated settlement;
denial;
litigation/an alternative dispute resolution;
subrogation or recovery for payments made.

The claims process for real estate owners and mangers rarely goes perfectly. But have a plan in place will smooth the edges.

For further information always consult with your insurance broker or agent or your insurance carrier.

Instant Insights /

Investigate, Evaluate, Resolve

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