Cancelled rally: rapid response from an events specialist
The financial risk was particularly high, exceeding several million euros. For Stelliant Loss Adjusting, assigned to the claim, the main aim was to determine what was the best financial outcome, between relocating the event and cancelling the stages, so that the organiser could then take appropriate action. The loss adjuster then had to accurately value the compensation. To ensure that this emergency assignment was a success, the financial loss adjustment was carried out by an events specialist, in partnership with Stelliant Group’s Finance division.
How Stelliant proceeded
Given the major financial risks involved, Stelliant Loss Adjusting worked in project mode from the moment it was assigned, mobilising loss adjusters with the right specialisms to resolve all of the issues at hand.
The Stelliant loss adjuster specialising in events supervised management of the claim. Indeed, their experience in the field and specialist knowledge of the industry and insurance cover for events proved to be an asset at every step of the process. They requested the documents required to conduct the loss adjustment (contracts, receipts, etc.), and explained the ins and outs to the organisers with diplomacy and in a timely fashion. But for added efficiency, they conducted their loss adjustment in close collaboration with the Stelliant financial loss adjuster. It was a team effort involving complementary skills that enabled the claim to be processed efficiently.
The financial loss adjustment began with a comparative simulation of cancelling the stages of the rally and relocating them to another country, in order to determine the best solution in monetary terms. After analysis, the Stelliant loss adjusters confirmed to the organisers that relocating was the least costly option. By following the recommendations of Stelliant Loss Adjusting, they were able to change the route of the rally sufficiently in advance of the race starting.
In parallel, the events loss adjuster examined the cancellation guarantee in the contract that the policyholder signed with the country in question, to determine whether the circumstances surrounding the cancellation adhered to the contractual relationship and its specific clauses.
Last but not least, the finance loss adjuster examined the damages in detail to identify sunk costs and accurately value the damage. A number of items were clearly costed, such as the losses incurred in changing the route: loss of TV rights, additional expenses incurred by reorganising the event (team and vehicle transportation, identification and equipping of new stages, etc.), the withdrawal of some of the competitors, etc.
The rally ultimately went ahead on schedule and could proceed without any further issues. Stelliant Loss Adjusting also played a consulting role, supporting the organisers in managing media pressure following the announcement of the change of route.
The joint intervention by Stelliant loss adjusters meant that costs could be controlled and the managers could guarantee that the event went ahead, with the change in route being compensated at the true value of the damages.