Resources

The Impact of Hurricane Helene is being felt across the Southeast. As crews rush to restore a sense of normalcy, and storm season continues, new weather systems threaten to bring more damage. One of the most frequent conversations we have after storm damage occurs focuses on mitigating further damage. Many organizations don’t realize that most if not all commercial property insurance policies require insured companies to prevent additional damage from occurring. Here is a breakdown of what you need to know:
What is the duty to mitigate damages?
In essence, this concept means that you have a responsibility to minimize your damages. The duty to mitigate damages can arise either explicitly (most insurance contracts will have some language to this effect) or may arise by implication (implied by the law of contracts). In either event, what will be required to comply with this responsibility will depend on each set of specific circumstances. Companies will not be expected to take extraordinary measures to prevent further damage to their property, but will be required to take “reasonable” measures so that the loss is minimized.

How do you comply with your duty to mitigate damages?
Insurance companies ask that policyholders complete what is practical and reasonable to secure and protect the damaged property. It is important to document all measures taken in order to satisfy this requirement.
After disaster strikes:
• Contact/notify your insurer of the event and damage
• Control access to the premises — which may include hiring guards/security
• When practical, mitigate the effects of any water damage
• If called for, demolish risky areas of the property to avoid further damage and possible injuries
• Relocate property to a temporary location to prevent exposure damage or theft
• Attempt to save and secure irreplaceable property (books, manuscripts)
• Pay special attention to computers and electronics

If our office can be of any assistance during this time of need, even on an advisory basis please don’t hesitate to reach out.

Seth McDonald
Director of Risk Management
smcdonald@alinecapital.com
864.478.5402