Effective Response To Sewage Spills. David Patzer, Risk Management Solutions CSRMA Risk Control Advisor

Transcription

1 Effective Response To Sewage Spills David Patzer, Risk Management Solutions CSRMA Risk Control Advisor

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3 SEWER OVERFLOWS & BACKUPS PREVENTION & RESPONSE $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$

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6 RISKS WE FACE BACKUP Blockage/Stoppage Resulting In OVERFLOW Results In Results In INSURANCE CLAIM(S) LOTS & LOTS OF $$$$$$$$$$ BAD PR PERSONAL SAFETY RISKS UNHAPPY BOARDS FINE(S)/RESPONSE COSTS REGULATORY COMPLIANCE BAD PR REGULATORY REPORTING UNHAPPY BOARDS

7 CSRMA SEWER OVERFLOW CLAIMS -AVERAGE COST IN $ 30,000 25,000 20,000 15,000 10,000 5,

8 $$$$$$$$$$$$$$$$$ January homes destroyed March gallons = $82,000 December Overflows Christmas Eve = $370,000 December Overflows In Bay Area = $400, Claim = $540,000 CSRMA claims >$100,000 CSRMA Claim = $450,000

9 Why Has The Cost Skyrocketed? FEAR OF MOLD!!!!! Increased Construction Costs Increased Sophistication of Remediation Firms Asbestos Removal, Testing & Disposal Increased Regulatory Compliance Protocols To Prevent Mold/Other Contamination Marketing Fear Increased Use of Industrial Hygienists Media Attention & Hype And, of course.

10 LAWYER S SMELL BLOOD The Blood of: Builders Contractors Insurers Public Entities

11 JUDGEMENT REVERSED STAY TUNED

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17 TIME TO BE REAL Can We Eliminate 100% of Overflows & Backups?

18 AREAS WHERE WE EITHER CONTROL OUR $$$ OR LOSE OUR $$$. Response Crews INTITIAL RESPONSE Mitigation Efforts Claims Information Gathering Response Time RESTORATION FIRM Remediation Protocols Pricing Structure Insurance Expertise CLAIMS MGT Incident Knowledge Project Management Length of Claim

19 PREVENTION & RESPONSE OVERVIEW STEP 1: Administrative Tools for: Prevention Mitigation STEP 2: Preventive Maintenance Reliability Centered Maintenance Program STEP 3: Response Plan Anticipate & Plan For Customer Needs Remediation Firm Role of the Field Staff Claims Management

20 We Want Our Customers to View Us As? Professional Prepared Response Uniform Response Consistent Response Empathetic

21 A Word About Customer Service Who Responds To Sewer Backups & Overflows? Who Is Interacting With Customers? i.e WHO IS REPRESENTING YOUR AGENCY/CITY? Are Customers Always Going To Be NICE? Can A BAD Encounter Influence The Course & Cost Of A Claim? Have Field Crews Received Proper Training? Who Loses In An Employee Said/ Customer Said Battle?

22 The Hardest Part Initial Arrival and Customer Contact What Do They Want? Reassurance Are They Mad At You? MEGO Effect Empathy Empathy absorbs frustration Desensitized Don t Care Professionalism Speak With A Single Voice Shield Yourself!

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25 OVERVIEW RESPONSE ACTIONS BACKUP Notified of Overflow/ Backup OVERFLOW Cause In Main? YES Relieve Cause NO Inform Customer Blockage In Their Lateral Divert & Contain Relieve Cause Area Cleanup Contact Remediation Firm Mitigate Damage Photograph & Document Photograph & Document Report Wait For Contractor Forward Documentation To Risk Management

26 PRE-PLANNING Remediation Firms KNOW WHO IS REPRESENTING YOU!!! Qualifications IICRC S500, etc. Insurance Pollution? Mold? Limits? Certificate? Response Time Multiple Vendors w/ Multiple Contacts

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30 Services EVLink Environmental Management Claims Involving Mold/Sewage/Asbestos Dry-Out Management Build Back Management Litigation/Project Support

31 CASE STUDY SAVINGS RESULTS: Leucadia = 22.1% El Cerrito = 25.3% Ojai = 19.8%

32 CSRMA RECOMMENDED SEWER BACKUP RESPONSE AND CLAIMS HANDLING PROCEDURE CLEARLY DEFINE: Who Does What & When Lines & Limits of Communication

33 Sewer Backup Into A Building No NO Field Staff Respond Does The Backup Appear To Be As A Result Of A Failure In The <insert name> Owned Sewer Lines? Yes Inform Owner/Tenant The Cause Of The Backup Is Not In The <insert name> Owned Sewer Lines TPA Performs The Following: 1. Initiate Contact With The Owner/Tenant 2. Make All Future Arrangements For Lodging, Food & Incidentals 3. Investigate Loss 4. Adjust & Administer Claim To Closure Under The Direction Of The <insert name> Risk Manager Risk Manager Performs the Following: 1. Reviews Incident Reports & Forwards ToTPA, As Appropriate 2. Communicates With Claimant, As Appropriate 3. Communicate With TPA To Adjust & Administer Claim To Closure Field Staff Performs the Following: 1. Relieve Blockage 2. Call Out Restoration Firm 3. Provide Owner/Tenant With The Following: Claim Form Customer Information Letter Damaged Personal Property Log 1 Night Hotel Authorization Form, as necessary 4. Gather Incident Information 5. Call TPA To Notify Of The Incident 6. Wait For Restoration Firm To Arrive 7. Forward Incident Reports & Related Documents to Risk Manager

34 Reassurance PURPOSE: Speak with a Single Voice

35 Reassurance PURPOSE:

36 Document loss PURPOSE: Gather info for claims examiner while scene is fresh

37 PURPOSE: Make sure it doesn t happen again

38 DOCUMENTATION ~10gal = $82,000 ~35gal = $52,000 LACK OF DOCUMENTATION

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42 LIVABILITY ANTICIPATE THE NEEDS OF YOUR CUSTOMER Not everyone can afford a hotel stay TPA s can t always respond fast enough SCal 2 families ended up in a Red Cross shelter and the media found out! Pre-Arrange Hotels Courtyard by Marriott vs. Grand Hyatt Establish what will & won t be covered This is for emergency situations only until the TPA or Risk Mgr can pick up the ball When to extend the offer: EXTENT OF OVERFLOW PERCENTAGE OF LIVING SPACE AFFECTED AVAILABLE BATHROOMS AND LIVING AREA HVAC AFFECTED MEDICAL/PHYSICAL CONDITIONS OF RESIDENTS

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45 THE FOLLOWING IS AN EXAMPLE OF WHAT YOU MIGHT WANT YOUR FIELD PROCEDURES TO LOOK LIKE Your Procedures

46 SSO/Backup Response Plan The Field Guide BACKUP ENVELOPE FORMS Declination of Cleaning Services Customer Information Letter Claim Form Affected Personal Property Log First Responder Form Hotel Selection Form Lateral TV Report SSO ENVELOPE FORMS SSO Response Guide SSO Report SUPERVISOR FORMS Building History Form Claims Submittal Checklist

47 Who Is Using This Approach? City of Livermore City of Vacaville West Valley Sanitary District Napa Sanitation District Vallejo San./Flood Control District City of Merced Mt View Sanitary District Novato Sanitary District City of Richmond Delta Diablo Sanitation District City of Gilroy Ventura Regional WA City of Corning City of Nevada City City of Dixon City of Galt City of Anderson City of Jackson Tamalpais CSD City of Modesto City of Patterson City of Belvedere Suisun City City Of San Mateo City of Pacifica City of Tracy City of Merced West County Wastewater City of Benicia City of San Bruno City of Colusa City of Red Bluff City of Marysville City of Yuba City

48 THANK YOU! David Patzer CSRMA Risk Control Advisor Risk Management Solutions cell fax