3 steps to prevent latent damage claims

Lesson Learned – How to keep adjusted files closed!

The most effective process to minimize the problem with “latent” content/equipment damages is to ensure that an accurate assessment is conducted as soon-as-possible following the loss incident. Ideally, the assessment should take place with the all the equipment in its original position/condition following the loss incident.
As much as you want to identify the equipment that was obviously exposed, you equally want to identify the equipment that was NOT in harm’s way!  The objectives of the initial assessment are relatively simple to establish and can be performed by initial loss responders with limited guidance in three steps.

1. MAPPING – Create a general mapping of the affected areas and equipment positions, supported by ample photographic documentation.  Although using an as-built blueprint is ideal, copies of fire evacuation maps or hand-drawn maps are commonly used and very effective.
2. TAGGING – Obtain an accurate inventory of ALL equipment that appears to be affected and/or in harm’s way (however remote).  Provide additional classifications/tagging of probable exposure and/or actual damage.   A simple, yet highly effective system incorporates the use of colored tags:
3. PRESERVING – Mitigate further damage to the equipment as it’s assessed (de-energize and initiate initial drying/preservation).  Unless absolutely necessary, do NOT move the equipment until a qualified Technician or Engineer can verify actual condition and prescribe final testing/recovery efforts.

The best defense is often the result of a having a great offense…  In the absence of reasonable post-loss assessments, ANY and ALL subsequent operational problems become associated with the loss incident as soon as something triggers the connection.  Many times it’s triggered by an overly cautious Manufacturer or service representative that’s called in to inspect the equipment.  More common than not, the inspections result in “damage reports” that either suggests pending catastrophic damage or limit their warranty/service agreements.  Once planted, the concept of latent damage becomes forefront and soon becomes the perceived reason for every operational issue encountered after the loss.  If you proactively document the loss as recommended, you minimize the issues commonly experienced on content/equipment losses that could otherwise result in re-adjusting closed files.