LEA Spring Meeting June 2014

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Only 8 Spots left for the 

Rod Birmingham Memorial Golf Outing

The LEA Block at the hotel is SOLD OUT

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Registration Information for the 

LEA June 2014 Spring Meeting:

Overhead Expense and General Conditions

When dealing with a large loss there are two categories of expenses we expect to see on an estimate. The first is the general contractor’s overhead. This category includes indirect expenses that are not readily chargeable to any particular job.  This expense represents the contractor’s cost of doing business and his fixed expenses.  He recovers these expenses by sharing them proportionately across all his projects.

These overhead expenses represent his main office expense, including rent, supplies, utilities, telephone insurance, staff salaries and other normal operating expenses. Operating expenses will include legal, accounting, marketing, travel and depreciation expense. These costs will be incurred regardless of any particular job.  Overhead on insurance estimates typically run 10% but may go to 15% in heavily developed urban environments; they are negotiable and may be reduced to 8% or less on very large claims.

In contrast to overhead expense, General Conditions represent costs to the general contractor that are specific to a particular project.  These are items that do not actually get built into the work and are temporary expenses to facilitate the work.  This will include project specific supervision, site safety expenses, temporary utilities, temporary office facilities, cranes or job-site vehicles, security, sanitation, site cleanup, lighting and weather protection when necessary and signage.  These are temporary and project-specific costs that can be charged directly to the project but are not actually incorporated into the repair itself.

Bear in mind that General Conditions are estimated at a fixed cost on the estimate. If the contractor spends more it generally comes out of his pocket unless he can convince the adjuster there was a hidden or unforeseeable cost. If he spends less, the savings go to his pocket, not off the estimate.  So there is a built-in incentive for the contractor to fully allow for all potential costs. The adjuster needs to be aware of costs that are either a double-dip component of a direct repair cost, excessive time projections or of questionable necessity. 


Contributed by:
Jerry Provencher

Wednesday Webinar: Retail, Restaurant & Hospitality: Defending Associates Relative to Criminal & Intentional Acts

THIS WEEK WE RECOMMEND THE FOLLOWING WEBINAR:

No cost to attend

Retail, Restaurant & Hospitality: Defending Associates Relative to Criminal & Intentional Acts

In this webinar, we will examine the coverage and defense issues that arise when an insured’s employee commits crimes involving property loss and personal injury while on the job or on the work site.  Specifically, we will consider how “Who is an Insured”,  the Intentional Acts Exclusion and the Innkeeper’s Liability Endorsement apply in various situations.  We will look at the best practice for handling claims of those employees who are covered under RORs and how defense counsel should defend those employees.

Date: Wednesday, July 9, 2014
Time: 12:00 PM - 12:30 PM EDT

*Please note: This posting is for informational purposes only, as a courtesy to our reading audience. Provencher & Company has in no way been compensated for the sharing of this information. The use of or enrollment in any classes, seminars, training, etc. in no way constitutes or implies any endorsement of the provider of said programs. Provencher & Company shares no financial obligation to attendee or organizer.

Hurricane Season Adjuster To-Do List

While it's nothing new for those of us in the claims world, the official start of the Atlantic Hurricane Season is

June 1st

That Means: It's 5 Days Away! 

At Provencher & Company, we trust our adjusters are as prepared for the upcoming storm season as the insured is advised to be. However, we often get so wrapped up in our daily claim work that we neglect to prepare ourselves personally for a storm deployment.

As such, we have compiled a quick "to-do" list for our adjusters to ensure each of you are ready to go when you get the call to deploy:

1. Prepare your home in advance. Do you live in a "potential threat zone"? Don't be caught in Florida working a storm and have your home unprepared back in Texas with a CAT 3 headed that way.

2. Prepare your vehicle. Tires good for travel? Routine maintenance done? 

3. Using a RV during deployment? Prepare it for the trip too. Routine maintenance, stock supplies, etc.

4. Prepare your computer. It happens every year..... at least one computer crashes in the field and the adjuster panics. Don't be the person that loses all your work. Make sure you are up-to-date on anti-virus software and have an external hard drive. 

5. W5 Claim Management. Learn it, use it, love it! Provencher & Company has a comprehensive claims management system that we have worked hard over many years to develop into all that we want & need. Use it - its to your benefit. Don't worry about losing your photos or estimates. Once you create them, save them to the claim file and there is no fear of the documents being lost. 

6. Estimating Software. The middle of a CAT is not the time to learn a new estimating software. If you are contemplating make a change, please do so NOW! Learn the software prior to having to handle 200 claims in a 2 week period! While Provencher & Company does not currently require one estimating software over another, some of our clients do require Xactimate only. We strongly encourage those adjusters who will be deploying for CAT duty to use Xactimate as it will increase our ability to place you during deployment. 

7. Photo Required. We need a photo for every field or desk adjuster on file. These might be used to produce a CAT ID if you work for us in the field. There are also occasions where our clients want to learn more about a file reviewer. We will be sending out a reminder notice in a few days to those still missing photos. Please supply an unprotected Jpeg file so we can resize it to fit if needed. Send any new photo (or if you want to replace your old photo) to hr@provencherclaims.com. 

8. Updated Personnel File. Please make sure you have completed a 2014 Adjuster File Update Form. If not, we need this! It includes your emergency contact information, state licenses, etc. Heaven Forbid, but if you fall off a roof, we need to know who to contact in case of an emergency! Unfortunately, it happens, even to the most experienced of adjusters! Ask Jerry!


Contributed by:
Julie Rock-Chatellier

Wednesday Webinar: Bulletproofing Your Claim Investigation Against Bad Faith

THIS WEEK WE RECOMMEND THE FOLLOWING WEBINAR:

No cost to attend

Bulletproofing Your Claim Investigation Against Bad Faith

Many bad-faith claims flow from allegations of deficient adjuster investigations. Plaintiff attorneys will examine an adjuster's fact-finding process months or years after the fact, compare it with "ideal" approaches and argue that the claim decision-making was flawed by a an adequate, biased or superficial investigation. This webinar will examine specific tips and strategies insurers and TPAs can adopt to insulate themselves from such claims through conducting reasonable investigations.

Date: Wednesday, June 11, 2014
Time: 12:00 PM - 12:30 PM EDT

*Please note: This posting is for informational purposes only, as a courtesy to our reading audience. Provencher & Company has in no way been compensated for the sharing of this information. The use of or enrollment in any classes, seminars, training, etc. in no way constitutes or implies any endorsement of the provider of said programs. Provencher & Company shares no financial obligation to attendee or organizer.

Webinar Wednesday: Don't Worry, Dear, They Have To Pay You Even Though I Caused The Loss: When Must An Innocent Co-Insured Be Paid?

THIS WEEK WE RECOMMEND THE FOLLOWING WEBINAR:

No cost to attend

Don't Worry, Dear, They Have To Pay You Even
Though I Caused The Loss: When Must An Innocent
Co-Insured Be Paid?

Insurance fraud investigation focuses on establishing whether an insured is responsible for the claimed loss, or otherwise misrepresented or concealed material facts. But if it is established that fraud was committed, that is not the end of the inquiry. Depending on the policy language and the law in the jurisdiction, other insureds still may be entitled to payment. This webinar will discuss the law in various states as to when innocent co-insureds are entitled to payment, policy language that may impact that determination and related issues.

Date: Wednesday, May 21, 2014
Time: 12:00 PM - 12:30 PM EDT

*Please note: This posting is for informational purposes only, as a courtesy to our reading audience. Provencher & Company has in no way been compensated for the sharing of this information. The use of or enrollment in any classes, seminars, training, etc. in no way constitutes or implies any endorsement of the provider of said programs. Provencher & Company shares no financial obligation to attendee or organizer.