R&R Insurance Blog

An accident happens with company vehicles on the road.  Step 1 is to call the insurance company.  Out on the road there are various exposures, each being covered under their own line of coverage.  With multiple coverages comes multiple claims adjusters.  With everyone working on their own timelines, offers are often slow to come in, and quite frankly, creates communication hurdles. 

In one particular case, damage was done to:

1. Auto physical damage to truck chassis and trailer
2. Inland Marine items - on- and in- the truck

Noticing the lack of central communication point,  R&R stepped in.  Meeting with each of the adjusters, three approaches were discussed how to evaluate the ACV (Actual Cash Value) of the damaged items:

1. Market approach
2. Straight-line depreciation
3. Broad evidence rule

Each situation will dictate the best evaluation method. In analyzing the various offers from the insurance company's adjusters, and looking at the client's equipment value, R&R was able to recover an additional $78,000+ for our client compared to the original offer from the carrier!

Lessons learned?

1. Determine best method for equipment valuation
2. Identify all equipment, including smaller items, with name & serial number
3. Document where equipment is bought
4. Utilize equipment appraisals that may already be on file for bonding & line of credit purposes
   
   • Especially important for custom built equipment - see www.machinerytrader.com as an example
5. Have an independent agent facilitate negotiations

Having a KnowledgeBroker working on your behalf will guide you through complicated claims and ensure you're receiving every dollar you deserve.  Want a second look at a claim?  Shoot us an email: safety@rrins.com.

 

Without inland marine coverage, your business’s personal property is not covered if it is being transported off site. A business’s personal property can include: machinery, equipment, stock, leased property, furniture, and any other property owned and used by the business.

For example, if you are a contractor and you transport tools and equipment between the workplace and job site, you will need an inland marine policy that covers contractor equipment.  Or, if you are a photographer and shoot on location, the photography equipment will need to be covered on an inland marine form. Basically, if you use equipment that does not stay at your premises, you may need to include it on an inland marine policy.

A business auto policy covers your vehicles, but what about mobile equipment such as a cherry picker, bulldozer, or even a golf cart? If you have mobile equipment that is not subject to compulsory insurance laws and used off public roads, it is not considered an auto. Therefore, you will need to insure that liability under your general liability policy and also insure it on an inland marine policy to cover any physical damage.

How can you determine what to insure?  Keep your agent informed. Let us at R&R know what you need insured and what you use it for. We will make sure that all your property has the appropriate coverage.

For more coverage information, contact a knowledge broker.