Catastrophe claims are not routine claims. Any loss may seem "catastrophic" to those involved, but a defined catastrophe or CAT is a disaster that affects hundreds of people and a wide area at the same time. Because of the urgency of a CAT, adjusters must be prepared to meet challenges anywhere at any time.
A CAT can occur anywhere in the world and affect not only that locale but parties on different continents entirely. The tsunami in Japan in 2011 created auto parts shortages worldwide. A storm closing East Coast airports can impact air traffic worldwide.
Because a CAT claim grows direct and indirect damages after the initial event, immediate response is necessary. Adjusters are dispatched to the scene of a CAT as quickly as possible, even if it may be days or weeks before reconstruction can begin. This is especially true in a liability-related CAT.
Course Objectives
Upon completion of this course, the adjuster will be able to:
- Determine coverage and liability aspects of a CAT
- Recognize the variety of disasters creating CAT claims
- Realize the requirements and limitations of an insurance policy in response
- Incorporate the risk plans of involved entities
- Prevent litigation
- Expedite the functions of others to restore normalcy
