Upcoming Miami seminar. A Complex Business Interruption Loss Policy Interpretation and the Measurement of “Actual Loss Sustained” A Case Study

Construct-Claims-Resized

This case study will provide an actual case study of claims filed as a result of a Cat 3 hurricane, causing wind damage to all buildings at a large manufacturing facility along the gulf coast and a 12 foot storm surge. The Facility manufactures individual products in the range of $1B each with as many as 15 products being manufactured at some point in the process at the same time. The Facility is rebuilt, after reengineering the process and improving the process flow and efficiency including new buildings and new equipment not existing prior to the loss, relocating buildings and equipment to create a better process flow, code upgrades, and other infrastructure upgrades.   The Facility (Insured) has a multi-billion dollar insurance policy(s) for property loss and business interruption loss.

Situation:

  • The primary layer covers Wind loss, Flood loss, and BI up to $500m.
  • The secondary layer covers only BI loss and only due to Wind up to $500m.
  • The Insured does not lose any contracts due to the loss.
  • The Insured’s revenue actually increases after the loss through changes and repairs paid for by the ultimate owner of the products being manufactured.
  • The property loss is adjusted at $485m and paid by the Insurer.
  • The Insured sues the Insurer for a $489m Business Income loss.

Questions that will be addressed:

  • When is a widget not a widget?
  • What does “Due Diligence and Dispatch” mean with respect to “physical” loss?
  • How do you “Fix” the DDD period of restoration with respect to physical loss?
  • How do you treat “Exhaustion” of the Primary Layer when the Secondary Layer has different exclusions?
  • Can you have a BI loss if you don’t lose contracts or revenue?
  • How do you measure the Actual Loss Sustained when there is no loss of contracts or revenue?

Hill International

Date: March 3th 2015

Time:

5:15 pm Registration

5.30 pm Conference

6:00 Informal discussion

6:15 Networking

Where: Malbec Room of Novecento 1414 Brickell Ave, MIAMI, FL 33131

Registration deadline: March 2th at 1:00PM. Only 40 available tickets.

To register, please send an email to: d.roig@kennedys-latam.com

Also by LinkedIn:

View David ROIG's LinkedIn profile View David ROIG’s profile

Casual attire. Cost for this event: Free

 ***********

Presenter’s Bio

Timothy R. Chitester, PE. Senior Vice President

Timothy R. Chitester is a Registered Professional Engineer with over 35 years of experience in the engineering, design and construction industry. His wide breadth of experience includes the resolution of construction disputes, construction claims, property loss and business interruption claims, and project management. Mr. Chitester has been directly engaged in design/build projects for commercial, institutional, and utility customers as both an engineering manager and project manager.

Mr. Chitester has provided property loss and surety support services requiring the review and evaluation of more than 150 contractors for standard of care and project implementation programs. He has recommended single and aggregate bond lines to the surety based on contractor processes, procedures, techniques, and project implementation history. Mr. Chitester is keenly aware of a contractor’s requirements to successfully implement a project.

Mr. Chitester has been the Project Officer in charge of all CAT work associated with post hurricane damage assessment of institutional, commercial, and residential properties throughout the gulf states. Property loss cost estimating and determination of the period of restoration has been completed for property loss matters in excess of $1B. Mr. Chitester has worked on losses associated with hurricanes Jeanne, Francis, Charley, Ivan, Katrina, Rita, Wilma and Ike.

Mr. Chitester is also recognized as an expert on construction claims and has testified in federal court, federal mediation, state court, AAA arbitration and international arbitration relating to matters of construction management, contractor and engineer standard of care, trade use of contracts, cost, schedule, and productivity with resultant delay and disruption.

 

Hill International

For nearly four decades, public and private‐sector clients worldwide have selected Hill International (NYSE:HIL) as construction consultants on their most complex projects. Each client has unique needs and goals, yet they all choose Hill because they need experts who can prevent problems, minimize risks and eliminate surprises—they need a firm they can trust who will deliver results. Meeting our clients’ diverse needs in handling construction risk and exceeding their highest expectations is our goal at Hill. We accomplish this objective through a broad range of project management, construction claims, and insurance consulting services that support our clients during every phase of a project, from planning and design, to procurement and construction, to start‐up and operation. With 4,600 professionals in 100 offices worldwide, Hill has the experience and the expertise to help our clients deliver their projects on time, within budget, and with the highest quality possible. Hill maintains offices in Rio, Sao Paulo, Bogota and Mexico City with over 450 staff providing construction and insurance consulting services as well as construction and program management services. Hill currently is serving clients in Brazil, Panama, Chile, Peru, Mexico, Colombia, Argentina, and Uruguay.

Specifically, Hill provides property loss consulting services for the insurance industry, helping insurance companies, adjusters and attorneys resolve property loss claims expeditiously and effectively. We prepare and review of proof of loss claims as well as provide damage assessments and construction cost estimates Our property loss consulting areas of expertise include water intrusion analysis, business interruption schedule preparation and analysis, business interruption construction cost analysis, construction planning evaluation of expediting costs, and clerk of the works and program management services.

cropped-banner_blog_insurance_miami1.jpg

About Insurance Professionals Miami

Insurance Professionals Meetings in Miami is an insurance and reinsurance forum useful for professionals of the insurance sector and to share experiences, knowledge and expertise.
This entry was posted in Conferences and tagged , , . Bookmark the permalink.

One Response to Upcoming Miami seminar. A Complex Business Interruption Loss Policy Interpretation and the Measurement of “Actual Loss Sustained” A Case Study

  1. Pingback: Insurance Professionals Miami, the networking group for Latin America, is now 800 members strong | (re) Insurance Professionals Miami (Latin America & Caribbean)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s