Claims
Hurricane
Andrew
Hurricane
Andrew devastated South Florida in
August of 1992. At that time, we were acting as risk and executive
general adjusting managers for a large aviation and real estate company
who was serving international clients from its fixed base operation at Miami International Airport.
The storm damaged millions of dollars of property and aircraft, and we
successfully managed the entire process of investigation and repair. We
were able to establish temporary facilities for all of our client’s
customers, and expand the fueling and baggage handling operations to accommodate
the increased activity for disaster recovery. Rather than experiencing a
business interruption loss, our client had a 200% increase in business as
a result of our efforts.
Detroit Fuel Tank Incident
In
September of 1982, we were acting as risk and executive general adjusting
managers for an international aviation company who was serving
international clients from its fixed base operation at Detroit International
Airport. The staff
was trained for cleaning jet fuel tanks the week prior to the incident by
a major international airline. The training failed to prepare the staff
for aviation gas tank cleaning, which has an entirely different process
due to the physical properties of the fuel. During the attempted cleaning
of the avgas tank, two persons were overcome, became asphyxiated, and
died. While on the phone with the operations staff, we were able to avert
another death by ordering another person not to try to rescue the other
two staff members. While this was a very tragic situation, our quick
thinking and training saved at least one life, and created an immediate
investigation and containment of the scene. The entire workers
compensation and general liability claim process was managed by us,
resulting in mitigated costs. Additionally, in our role as risk manager,
we were able to successfully create safety standards, controls, and
training which allowed our client to continue their business at the
airport, and around the world.
Victor,
New York Construction Incident
The
week before Christmas in 1988, we were acting as risk and executive
general adjusting managers for a national construction company who was
building a golf course in Victor,
NY. At the end of the day,
the person operating the land clearing equipment attempted to get off the
equipment. Unfortunately, he had not properly secured the equipment, and
when he exited the cabin and descended the steps, the equipment rolled
over him, crushed him, and he died. In a bone-chilling blizzard, our
staff completed a thorough scene investigation which determined the
proximate cause of the incident, completed eyewitness statements, as well
as coordinate all communication with the family and construction company.
As a result of our quick response and coordination, no litigation
resulted from the incident. While this incident was tragic and
devastating to the family, the company successfully completed the golf
course which continues today.
Irondequoit, New York Construction Incident
During
the summer of 1985, we were acting as risk and executive general
adjusting managers for a national construction company who was building a
super regional mall in Upstate New York. One of the steel erection
contractors was ascending the frame structure from the first to the
second floor, slipped and fell falling on his neck. He was rushed to the
hospital a few miles away, and after many hours of surgery his life was
spared. Sadly, he was left with being paralyzed from his neck down to his
lower extremities. We conducted the accident investigation and found he
was not wearing his safety equipment. After a thorough review of the
contracts and insurance, we provided notice to all contractors and
insurers of their responsibility. We further served as expert witnesses
in depositions regarding the final resolution of the claim. Additionally
we served to provide a structured settlement to provide the claimant and
his family with lifetime benefits for medical and economic damages.
Several million dollars were saved utilizing our services versus going to
trial.
Freehold,
New Jersey
Construction Incident
In
the fall of 1986, a 2,000,000 square foot mall was being built in
Freehold, NJ under an Owner Controlled Insurance Program (OCIP). The
contractor responsible for underground utility access for the mall failed
to provide trench protection during an unusually rain soaked period of
time. While working in the trench, a worker was buried in a collapse of
the trench walls. The person was severely injured as a result of the
collapse. We conducted an investigation of the matter and placed all of
the responsible parties on notice for their responsibilities. We also
structured a settlement for the person and his family for his ongoing
medical and economic damages. Several million dollars were saved
utilizing our services versus going to trial.
Freehold,
New Jersey
Environmental Liability Incident
In
the construction of a standard bred horse racing grandstand, there were
several issues which were raised by local state and federal authorities
regarding the prior operation of the racetrack. We were retained as risk
and claim adjustment managers to resolve these issues. One unresolved
matter involved the use of a federal Superfund site for the general
debris of the racetrack in the mid-1950’s. As a result of their ownership
of the racetrack, they received notice from the Environmental Protection
Agency that they would be held responsible for their debris at the site.
At the time, their General Liability Insurance policies contained an
absolute pollution liability exclusion and they did not carry Pollution
Liability Insurance. We conducted a complete forensic coverage analysis
back to the 1950’s which resulted in finding $500,000 of insurance
for these occurrences. The final settlement with the EPA amounted to $300,000,
after much arduous negotiations from all parties. The owners were very
pleased that they did not have to outlay any expenses as a result of this
matter.
Hurricane
Wilma
In
October of 2005, we were acting as risk and executive general adjusting
managers for a publicly traded Real Estate Investment Trust who owned
property in South Florida. Several
months prior to the hurricane, the roofs had been replaced to the local
standards at a cost of $1.5 Million. In addition to the physical
improvement of the property, we provided a disaster plan to the
operations several months prior to the storm. Prior to the event, we set
up a command center using the company’s Call Center
so that the company’s customers and employees had a team to
coordinate the recovery efforts. While several million dollars of damages
did result from the occurrence, our planning and recovery efforts
mitigated over $25 Million dollars of possible physical and business
interruption damages.
Rochester, New York Aircraft Crash
During
the Thanksgiving Holiday of 1982, we were acting as risk and executive
general adjusting managers for a private aviation company. One of the
company’s customers was returning from a trip with their family,
and crashed while trying to land at the airport. We conducted a complete
investigation for the company and their insurers, and found several
eyewitnesses who said the plane was in an accelerated stall just prior to
the crash. Two of the eyewitnesses were Navy pilots who offered their
observations related to the incident. Additionally, we completed a record
analysis of the aircraft and found no irregularities. The accident was
determined to be pilot error by the authorities. Subsequently, a lawsuit
was brought by surviving family members alleging that our client in some
way responsible for the accident. Our investigation and analysis was very
helpful in defending the case, and was settled for less than the cost of
litigation expenses at a future trial.
Los Angeles Earthquake
A huge
earthquake hit Los Angeles
on January 17, 1994 hen we were acting as risk and claim managers for a
large real estate firm. Los
Angeles emergency services were severely
strained due to the widespread damages and loss of life. We responded by
providing emergency management resources and property damage scoping
services. The total damages
amounted to over $50 Million, and we coordinated all of the self-insured
and insurance resources. Ultimately, our client was able to repair all of
their buildings and resume service sooner that any of it’s
competitors. This saved millions of dollars of business interruption
losses, and ultimately they gained a competitive advantage in the market.
Philadelphia Fire
In August of
2007, a fire in an apartment complex in Philadelphia County
resulted in $2.5 Million of damages to an entire building of 20 units.
Our risk and claim management efforts allowed our client to determine the
proximate cause of the incident within two hours, and to subsequently
manage the incident with residents, local authorities, and vendors. We
coordinated all self insured funding with insurance resources to rebuild
the building in record time. The business interruption loss was minimized
by over $500,000, which was appreciated by our client and their insurers.
Chicago Flood
In March of
1995, a major mid-west mall owner experienced a flooding loss of half of
their mall being under water from a creek overflowing from a spring thaw.
The damages to the mall and tenants were over $10 Million. We coordinated
all emergency response efforts and claim estimates for the loss, and
managed over 40 subrogation defense matters from the tenant insurers.
Ultimately, the flood waters receded and the owner and tenants were back
in business within several months. We were given awards for the exemplary
emergency management and disaster recovery efforts by the owner, local
authorities, and the owner’s insurers.
Virginia Fuel Spill
At Washington
National (Reagan) Airport in August of 1988, a major fuel spill occurred
when a truck overturned during construction of an area of the tarmac. Our
risk and claim management services addressed the entire matter and the
airport reopened within several hours. We managed the entire financial
recovery efforts on behalf of the owner of the fixed base operation and their
insurers. While the claim costs were several million dollars of cleanup
and lost revenues, our emergency management efforts saved another several
million dollars of potential damages from occurring. The airport
authorities commended us for our quick response and containment in a
highly sensitive and active environment of national security.
Dog Bite Incident
At an apartment
complex in Upstate New York, a tenant was unable to control his dog, and
the dog attacked a small boy while he was playing in the yard. The dog
attacked the boy in the face, and subsequently ripped his nose off. Soon
after the incident, the boy went through several reconstructive surgeries
to regain use of his nose. The family sued the tenant and our client
landlord for over $5 Million in damages. Since we were able to obtain the
best available plastic surgeons for the boy’s injuries, and agree
to pay for the medical care at the time, we were able to mitigate the
damages significantly. Ultimately, we were able to put together a structured
settlement for the boy and his family, where only $500,000 of economic
damages was incurred by our client and their insurers. Everyone agreed
that our immediate and controlled efforts resulted in over $4 Million
dollars of direct risk costs, and extensive indirect savings of executive
and staff time and media coverage of this horrible event.
Virginia Construction
Incident
In
the fall of 1997, a 2,000,000 square foot mall was being built in Tysons
Corners, Virginia under an Owner Controlled Insurance Program (OCIP).
During the pre-construction period, we created a project-wide safety and
loss control program, and an emergency response program in the event of
any losses. After commencement of construction, one of the construction
manager’s employees was severely injured in a fall from the second
story. Due to the planning efforts, all employees acted immediately and
responsibly in the emergency management period. Subsequently, we managed
the entire claim process by establishing a structured settlement for the
person and his family. Ultimately, these actions saved several million
dollars of risk cost to the OCIP, and the project was able to be
completed on time and budget.
Blackburn Group, Inc.
23 Bremen Circle, Penfield, NY 14526
(585) 586-4530, Email: sales@blackburngroup.com
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