The risks of property damage and business interruption may be omnipresent, and there is no shortage of restoration contractors willing to respond. Increasingly, risk managers and their risk advisors are realizing that a reactive approach is not the best way to ensure recovery and minimize downtime for a business when disaster strikes. As a result, there’s a new mindset among leading risk management professionals: Restoration as an end-to-end solution for the entire claims process. The best restoration services aren’t limited to cleanup and rebuilding, and the best time to think about restoring damaged property and facilities is before experiencing a loss.
A data-driven approach, with experience in serving specific industries and technology applied to measuring risks, is a good way to not only ensure robust response planning but also maximize loss control and prevent damage.
Despite the record number of hurricanes and wildfires in 2020, catastrophes are not the only events that can disrupt businesses and require restoration services. In the COVID-19 era, infection prevention and decontamination are critical for employees and customers. Similarly, specialized restoration treatment is needed to address the secondary damage from fire, smoke, flood and mold. With the Internet of Things and greater connectivity, the overall loss can be much more extensive than the visible physical damage. Better outcomes in all these risk scenarios are possible when organizations and their risk advisors select the right restoration provider.
Risks touch all stakeholders
Business interruption risks are challenging enough for risk managers, but the reality is the risk of disruption touches all stakeholders. Business owners face loss of income and profit, employees are displaced, and customers cannot be served while the business is offline. Business interruption claims are complex, and unpleasant surprises during such claims can damage the relationship between brokers and risk managers.
Communication gaps can occur during the restoration process, as often a claims adjuster and the insurer on the claim may have little knowledge of independent restoration contractors. Poor communication can lead to unmet expectations, and claims can strain the working relationships between risk advisors and their clients, as well as risk managers’ reputation with their organizations’ leadership.
How to mitigate restoration risks
- How will our organization function if displaced by an event?
- What will we do if we can’t work in our facilities?
- Can our employees work remotely?
- Is our network data in the cloud? Is it backed up on local servers?
- What materials and supplies would we need if we lost our roof?
- How long can our contingency plan survive?
Loss of production can have far-reaching consequences for supply chains, as the world learned during the global pandemic. Continuity planning and supply chain risk management are vital to recovery, but sometimes even simple steps can make a big difference. Having a backup generator, for example, can save a business days of downtime and reduce secondary damage.
Jeffery Magoon (left), Senior Vice President of Sales Development and Integration, First Onsite Property Restoration
Jeffery is a property restoration expert whose experience in the insurance, restoration, and technology industries give him a unique perspective on risk management and technology-based solutions for the restoration industry. Jeff led a team to develop a one-of-a-kind agnostic IoT platform that reduces insurance claims, mitigates risk, and lowers costs for insurance companies and their policyholders. He continually works to leverage technology to solve major insurance industry issues, e.g., water claims, crisis management and asset management. His specialized knowledge in implementing internet-of-things (IoT) technology into risk management plans help clients mitigate risk, reduce claims, and lower costs in ways others cannot. Prior to joining First Onsite, Jeff owned insurance agencies that operated in all 50 states, built an insurance program for a club association, and worked as an executive at a major restoration company.
Joe Poliafico (right), CSP, Vice President, Global Risk and Safety, First Onsite Property Restoration
Joe specializes in risk management for the construction and engineering industry. With 28 years of experience, Joe has a record of accomplishments in assisting organizations in the profitable implementation of organizational risk and safety programs. He has extensive knowledge in risk assessment, subcontractor default insurance, claims management, and overall risk management program design and implementation. He has been a speaker at IRMI and regularly for the Association of Builders and Contractors. He is a Certified Safety Professional and a graduate of Millersville University with a degree in occupational safety and health. He also holds a master of business administration from Eastern University.