The irony of calling a CAT plan a cat plan shouldn't be lost onanyone. There are so many fangs, furry legs and moving parts tomanaging an earthquake catastrophe that any number of things can gowrong. The only way to herd the proverbial cat is through propercatastrophe planning. Here are some tips for agents, brokers andadjusters to help them give insureds an excellent claims experiencefollowing an earthquake.

1. Adequately staff the CAT team

An insurance company's CAT plan should start with adequatestaffing. The response team needs to be large enough to provide atimely response to the number of commercial and personal linesproperties that may be impacted in any particular geographic area.As an insurer's book grows, so too should its response team. CATteams should include property underwriters, earthquake certifiedadjusters, contractors, engineers, geologists, forensicaccountants, and designated support personnel from IT andaccounting.

The insurer should contract with independent adjusters who areproperly licensed in the state and experts who can deploy as soonas a quake occurs. The team should arrive on site to conductinitial inspections of every damaged property within days, if nothours. Remember that demand for quality insurance adjusters willrise dramatically after a quake, and it is easier to scale downrather than to find additional team members following a quake.

Although hiring additional temporary staff may be necessary,cross-training existing employees ahead of time to fulfill CAT teamsupport roles provides better management.

2. Create a call tree and a CAT center

A quake with a magnitude large enough to result in damage shouldtrigger communication to the team through the call tree. The calltree should include phone and e-mail contact information, as wellas back up numbers for CAT team members. It should state theprotocol for team notification and describe first responsibilities.An analysis of the quake's magnitude and damage radius must be doneto determine how many policies in force may be affected and howmany claims professionals, experts and ancillary personnel willneed to be called into action.

All crucial CAT team members should deploy immediately to thedesignated CAT center. A backup office location should also bedesignated if the center is subject to being impacted by aquake.

The CAT plan should also include provisions for adequatelyequipping the CAT center. If additional computers and phones areneeded, this equipment should be procured before an event. If moreequipment needs to be purchased at the time of the quake, knowwhere it can be found and who is responsible for procurement.

A paper copy of the CAT plan and call tree should be distributedto all team members and kept at their homes and the office in theevent that internet access is compromised during an earthquake. KeyCAT team members should also have ready access to laptops so theycan fulfill their role remotely if they're unable to reach thecatastrophe center. The CAT plan should also designate back-uppersonnel to fulfill essential initial duties in the event a leadis unable to immediately report.

3. Contact insureds immediately and maintaincommunication

Immediate communication with insureds is the first priority ofthe CAT plan. The critical importance of providing insureds withclear and useful information cannot be overstated. A well-organizedcatastrophe plan and team will give insureds confidence and peaceof mind when they need it most. The CAT team should begin byphoning all insureds potentially impacted by a quake to verify lossor damage. The CAT plan should include a comprehensive claimin-take reporting form so details of the loss can be passed alongfor triaging and adjuster/expert assignment. This enables those whowill have contact with the insureds to be prepared to explain theclaim process and to provide them with coverage and limitinformation. Timeliness is key since the insureds will want to knowwhen field adjusters and experts will arrive on site, whatresources may be available for temporary housing, and when and howpayment will be made.

The catastrophe center should have a 24-hour claim in-takehotline to assist insureds day and night. Important earthquakeclaim information should also be posted prominently on theinsurer's website for insureds as well as insurance agents andbrokers.

Related: How the insurance industry prepares forhurricanes

 (Photo: iStock)

4. Communicate with agents and brokers and thedepartment of insurance

Insurers should send bulletins with response timelines and otheressential information to their agents and brokers advising them ofCAT plan procedures for reporting and adjusting claims, along withcontact information for the catastrophe team.

Following a quake, a designated CAT team point of contact shouldalso notify the Department of Insurance and proactively advise themof the CAT plan deployment. The department's familiarity with theinsurer's procedures can assist in the coordination of private andpublic response efforts in the disaster area.

5. Field team readiness

An insurer may have adequate staff and experts set to respond,but how do the CAT teams reach insured locations when the area isso severely damaged that it has been closed by civil authorities?Although field adjusters can't breach blockades, they can maintainconstant communication with the catastrophe center and insureds tokeep everyone informed of timelines for property access. Knowingthat help is on the way is good; knowing when it will arrive isbetter. Drone access is now making inspection possible in areasotherwise inaccessible. Although drones do not (yet) constitute acomplete inspection, catastrophe teams with properly registered andlicensed drones may get enough damage information for insurers tobegin payment.

Catastrophe plans must anticipate the possibility that fieldadjusters from outside the area will need to be deployed first toassist insureds because adjusters in the immediate area are busydigging out themselves. Therefore, the catastrophe plan shouldinclude contingency transportation plans for out of area adjusters.In a severe quake, anticipate airport and road closures and planalternative routes. Because housing will be quickly impacted, makehotel arrangements for adjusters immediately. Consider bookingreservations at a hotel a distance from the epicenter to limit thepossibility that the hotel could also be subject to potentialdamage from an aftershock. Just as drones elevate catastrophe planresponsiveness, so do mobile emergency response vehicles (MERVs).MERVs function as mobile field offices and double as sleepingquarters for adjusters when hotel space becomes unavailable.

How an insurer handles their claims is the fastest way to buildor break their relationship with insureds and their reputation inthe industry. In assisting an insured to select an earthquakeinsurer, agents and brokers should ask about the insurer'scatastrophe plan so they have confidence that their clients will bewell cared for during a catastrophic event. An insurer with awell-organized catastrophe plan will be prepared to deliver on itspromises.

Beth Ossino is claims manager at Golden Bear InsuranceCompany, which writes commercial earthquake insurance inCalifornia, Oregon, Washington, Idaho, and Alaska, and writespersonal lines quake in California only. Visit www.goldenbear.comfor more information.