Directors' Q&A: Team effort

Richard Standring, managing director, Lakeland Leather

What does your firm do?
Lakeland is a specialist in leather, suede and sheepskin clothing with a reputation for exclusive, affordable fashion separates and accessories for men and women. The Lakeland story began with one shop in Ambleside in the mid 1960s and has now expanded to 21 shops in the UK.

How badly was your Ambleside branch affected by the floods?
Extensive damage was sustained throughout the fabric of the building and ultimately to some of the stock held within the premises, although we had moved our expensive stock upstairs, while the water was only knee high. The main priority was to salvage stock that had not been affected and then catalogue and assess the stock items that had been damaged. Then it was a case of cleaning and drying the building sufficiently to commence the building and contents repair and begin the replacement process.

What did you do and how did your broker, insurer, and loss adjuster help you?
Our local broker, Bluefin, has been of great help and reassurance since the flood waters hit. The damage sustained was extensive, with the waters reaching five feet in height within the building. I contacted Philip Jackson, director at Bluefin, and we assessed when we could gain entry back onto the site. Along with Fusion and loss adjusters Certo, each item lost or damaged was logged, photographs taken and all forms completed to help speed up the claims process.

Did the industry meet your expectations?
We have had claims before but nothing as extensive as the damage caused by these floods; it took all the resolve of the Lakeland team to get us back on our feet. However, we shipped out our first goods from the warehouse seven days later, greatly assisted by the speed of response from Bluefin and Certo. Our number one aim was to ensure that our customers didn't suffer as a result of the flooding and, as a result of the actions of all involved, we believe this was achieved.

Philip Jackson, Cockermouth director, Bluefin

What did you do when you heard about the claim?
I first received a call from Lakeland on 19 November informing me how high the flood waters were. We immediately notified the insurer, Fusion, which appointed Certo, a chartered loss adjuster, to progress the claim.

How quickly did you respond?
I met the client on 21 November and again with David Pinkney, major loss director at Certo, the next day. We worked together to settle the stock claim by the following Thursday, the funds for which arrived the following week. Ultimately, this claim demonstrated the value of the broker-underwriter relationship in helping a client.

How are you supporting the client after the event?
Following the stock loss, I worked with the Lakeland team to bring together its buildings loss by appointing a local chartered surveyor with whom we put together a buildings repair schedule, which was then sent out for tender. We also assisted with the contents inventory for Lakeland, which has also now been agreed by Certo.

How many clients did you find in a similar position?
Bluefin has four offices in Cumbria. Many of the Cockermouth team have worked in the town for over 20 years and so, not surprisingly, we have had the lion's share of losses following the floods. We have been assisting 145 clients and have an estimated claims total of £20m being handled by the Cockermouth branch. Since the floodwaters devastated the town, it has been an enormous challenge and we've learned a huge amount. Ultimately, we are all incredibly motivated to help where we can with the loss and suffering of the local community.

Ed Gooda, claims manager, Fusion

How long did it take before you saw the client?
We first spoke to Richard Standring from Lakeland on the morning of 20 November and arranged to visit him with Bluefin the following day.

What did you arrange for the client?
After appointing Certo on the same day, we identified damaged and undamaged stock on 21 November and arranged for two salvage buyers to assess the value of water-damaged stock. Richard Standring agreed to count and list damaged stock so we could allow for its removal and agree early payment. On 24 November, we were on site again to check and adjust the stock lists, authorise its disposal and agree how the claim would proceed.

How much did it cost and did the client agree to the amount?
We agreed the stock loss at just over £800,000, which included settlement of the stock claim in its entirety. To help the business to get up and running, we also agreed cleaning and drying costs.

Source: PB – May 2010