Commercial property carriers process thousands of claims involving various electronic inventories every year. When dealing with computer, medical, telecommunication, and manufacturing equipment losses, two questions arise: Are major commercial carriers maximizing their opportunities to lower the loss ratio limit? Should salvage recovery efforts be the last thought in settling electronic equipment losses?
The answer to both questions is, "No." Upon settling claims, adjusters often overlook the most potentially redeeming item: loss inventory salvage recovery value. Over the years, insurance carriers have been groomed by general salvors to believe that 10 percent loss inventory recovery is an industry standard.
Adjusters often let expensive loss inventories rot in storage facilities until claim settlements have been etched in stone. Allowing high technology loss inventories to remain in warehouses for indefinite periods of time exposes insurance carriers to unnecessary and expensive monthly storage fees, potential theft, and lower recovery values because the inventory is now a generation older or has deteriorated due to untreated water or smoke contamination.
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