CPPC Meeting April 2012

1. CPPC MeetingApril 2012 What Would You Have Done?

2. CLAIM 1: “Missing Dish pack containing 3,000 cd’s.” Amount claimed - $7,500 • Initial Observations • CD’s packed in a dish pack? • The amount being claimed is questionable. • Initial Actions Steps • Confirm coverage. • Acknowledge to customer that claim was received. • Initiate tracing action with the van line. • Request signed delivery paperwork from van line. • Ask for feedback from van line. • Results of investigation • Coverage was reported and shipment insured under a replacement cost policy. Customer is an employee of a major client. • A dish pack is noted as missing. • Contents described as “miscellaneous.” • Questionable that cd’s would be packed in a dish pack. • Questionable that a dish pack would hold 3,000 cd’s? • A dish pack holding 3,000 cd’s would weigh approximately 600 pounds.

3. CLAIM 1: Process Options: Inform the customer that we’ve confirmed the box would weigh almost 600 pounds, and since we’ve confirmed this is a fraudulent claim we will be contacting the State Insurance Department and filing charges against him. Explain to the customer that the carton, as described, would weigh approximately 600 pounds, making it impossible for the mover’s to handle such a box, and request additional feedback from him. Inform the customer we can pay him for 500 cd’s since this would constitute a more realistic and manageable weight. Suggest to customer that we want to place a carton weighing 600 pounds in his living room and if he can move it out into the street without breaking, we will pay him the $7,500 being claimed. Provide the corporate client contact with a “heads up” on this questionable claim. Search data base to check for any prior claims that this customer may have filed.

4. CLAIM 1: • Results: • No prior claims filed by this customer. • Client contact response – “Thank you for letting us know. This is a well respected executive within our organization, so please work on getting this settled.” • Customer response – “I’m not familiar with the packing habits employed by the moving company, and I don’t know how many cartons are actually missing. What I can tell you, is I’m missing all of my CD’s.” • What We Know: • Customer is a high level executive of one of our major clients • A dish pack is noted missing • Credibility concerns

5. CLAIM 1: • Strategy / Goal: • Get the claim settled for $1,500. • Conclusions: • Not all customer’s are honest. • “Status” does matter. • Establish a goal. • Negotiating skills are important. • Do not provide the customer with “service issues ammunition.” • Be creative / Think outside the box.

6. CLAIM 2: Multiple furniture pieces with varying degrees of cosmetic damages (scratches, nicks, gouges, etc.).” “My furniture was in pristine condition and like brand new. Repaired furniture is not acceptable to me. I have replacement insurance and I want everything replaced. Approaches: “WRONG” Immediately establish an adversarial relationship. “RIGHT“ Attempt to win customers trust and confidence. Initial Action Steps: Choose an inspector / repair service Discuss with the inspector Assign for inspection only Contact the customer a) Acknowledge receipt of claim b) Acknowledge customer’s concern c) “Introduce” the inspector

17. CLAIM 2: Multiple furniture pieces with varying degrees of cosmetic damages (scratches, nicks, gouges, etc.).” “My furniture was in pristine condition and like brand new. Repaired furniture is not acceptable to me. I have replacement insurance and I want everything replaced. Approaches: “WRONG” Immediately establish an adversarial relationship. “RIGHT“ Attempt to win customers trust and confidence. Initial Action Steps: Choose an inspector / repair service Discuss with the inspector Assign for inspection only Contact the customer a) Acknowledge receipt of claim b) Acknowledge customer’s concern c) “Introduce” the inspector Behind the Scenes Preparation: Review origin inventory / provide copy to inspector. Identify any previous repairs or imperfections. Provide client contact with a “heads up.” Be prepared to quote the policy.

18. CLAIM 2: Continued Resistance: Quote the policy. Remind customer about the “guaranty” Restore one piece. Prior repairs / imperfections / origin condition. Settle based on cost of restoration. Pick your battles. Update client contact. Conclusions: Try to make the customer an ally. The “right” decisions can make all the difference. Communication skills are essential. Good judgment skills are a must. Know your policy and coverage’s. Claims that don’t kill you, will make you stronger.

19. CLAIM 3: “Missing urn. Contains the ashes of our family’s deceased and cremated dog.” Amount claimed – “Priceless” • Initial Observations: • Extremely sensitive claim. • Urn may be covered, but ashes will not be. • Initial Action Steps: • Notify van line, request trace, documents, etc. • Acknowledge claim to customer. • a) Investigating with the van line. • b) Sentimental value excluded. • Results of Investigation: • Packers / origin crew members do not recall the urn. • Nothing noted as missing on the paperwork. Process Options: Deny claim citing no exceptions at delivery. Deny claim citing the policy exclusion for animals. Request a photo of the dog and offer to inquire with numerous pet shops in an attempt to find a comparable replacement. Inform customer of negative trace results and offer a settlement for the urn only. Fill a replacement urn with cigar ashes and inform the customer that the urn had been found and will be returned.

25. CATASTROPHE CLAIM CHECKLIST: • Verify Coverage • Notify people within your organization that need to know • Obtain initial details about the loss • a) Is everyone okay? • b) Where did the loss take place? • c) Where are the goods now? Are they secure? • d) How bad is it? • e) Does the customer and the client know? •  Obtain “needed” documentation • a) Proof of coverage • b) Inventories • c) Incident report • Establish and initiate an action plan • a) “Specifically” what actions are necessary? • b) Carefully select a restoration service • c) What assistance may be needed from other partners? • d) Personal, onsite visit? • Contact customer / client • Establish a reserve • a) How so? • b) Proceed with “normal” process • c) Quick settle? • Keep the process moving • Keep the customer and client updated • Subrogation opportunity?

26. Thank You…