Loss Handling and Damage Management

Loss handling and damage management covers all the organizational measures necessary to optimally address damage or loss which has occurred. It extends to the management of all organizational and industrial activities for remedying it.

Damage or loss is insured in most cases, consequently loss handling and damage management also includes the services rendered by the insurance company and the expert/loss adjuster commissioned by it.

In complex cases BTE members are charged with clarifying a wide range of associated technical and organizational issues. Frequently an insurance company commissions experts/loss adjusters who jointly handle the claim together with the expert/loss adjuster hired by the insured party, their jointly clarifying the technical issues and the amount of loss or damage.

Following from the findings of the expert opinions provided by specialists (chemists, building and facility experts, operations/plant interruption specialists), claimants are able to proceed with having the damage remedied and/or repaired. Special rehabilitation contractors are commissioned to properly dispose of contaminated material created as the result of fire, water left by fire fighting efforts, floods, ruptured pipes, etc. Damage to property is repaired by specialist companies.

Owing to the relative infrequency of damage/loss, specific loss handling and damage management is required by both the claimant and the specialist companies as proper management enables damage/loss to be remedied in a expedient manner. As a consequence,

• the claimant can continue operation with minimal delay
• the insurer can settle the claim in as cost-effective a manner as possible.

Generally speaking, the claimant is unable to provide for this management himself, consequently experience has shown that optimal results can be obtained by assigning experienced individuals (loss adjustment managers) to the case. The loss adjustment manager has to satisfy the following requirements:

1. have a scientific background or engineering training so as to be able to properly assess technical aspects

2. possess business and economics expertise in order to evaluate the financial consequences of technical decisions

3. have experience in the management of erection and construction sites

4. be knowledgeable about insurance law

5. be capable of rendering their services in an independent and unbiased manner, exclusively bound by their expertise and their conscience

If all of these requirements are satisfied, the loss adjustment manager has the best chance of handling the claim in an optimal manner while safeguarding the interests of all those involved, including the claimant and the insurer. The loss adjustment manager can only do this providing when he is independent of all those involved, whether it be the insurer, claimant or contractors, thus being put in a position to properly assess the actions and work of all those involved.

BTE members have sound expertise in their respective fields. They go to every effort to perfect their knowledge and keep it up to date and are only bound by the matter at hand when bringing their knowledge and experience to bear. By virtue of their expertise as architects and engineers they make ideal loss adjustment managers.

As to the fees applicable, project management can be done as a component of the German Fee Regulations Applicable to Architects and Engineers (HOAI), which can be extended by special contract modules and fee schedules.

For more information, please contact the National Office.