Service To Fight Heavy Equipment Theft

For a few dollars per item per year, HELPtech will allow owners of heavy equipment to securely and confidentially register an item with New York-based NER online at www.NERusa.com, according to NER.

Because of its high value and demand, heavy equipment has become an attractive target for thieves, NER noted. The frequent lack of vehicle security at remote and poorly secured work sites has added to the problem, NER said.

The organization said that the loss cost to owners and insurers is as high as $1 billion each year?and as little as 10 percent of the equipment is ever recovered.

David Schillingford, NER director of marketing and operations in New York, said the benefits of the online tool to insurers and risk managers "are enormous. When it comes to loss ratios and the risk management perspective of underwriting, this is a great tool."

With the use of high quality decals, he explained, owners will be able to alert potential thieves that the item is registered on a national database searched by law enforcement and buyers of used equipment.

"You really can't do anything to stop a thief from stealing a piece of heavy equipment," Mr. Schillingford said. "But what you can do is let the thief know that when they move it or if they try and sell it, it will be searched and they could well be caught then."

Mr. Schillingford continued that "They could take the decal off, but it's still listed in the database, and [thieves] know it."

In addition to heavy worksite equipment, Mr. Schilingford said HELPtechcan assist owners of trucking fleets.

The system, he said will allow them to download and update fleet schedules electronically, enabling law enforcement agencies to verify whether a vehicle is supposed to be on the road.

Mr. Schillingford said that having fleet schedules readily available will help insurers from a recovery standpoint and also provide underwriters with "the kind of detailed schedule information they have never been able to get hold of."

Insurers ACE, Atlantic Mutual, Cincinnati, Kemper, OneBeacon and State Auto offer a 20 percent discount on HELPtech fees to equipment owners, NER said.

NER is a national database of stolen heavy equipment managed by equipment specialists that coordinate the efforts of the insurance industry and law enforcement in the fight against heavy equipment theft.

In the event of a theft, NER said it will be able to help law enforcement identify the true owner through its 24-hour hotline, used by police and customs officers investigating suspicious equipment.

A recovery can be made even before a theft report has been filed, NER said. The speed and accuracy of loss reporting will also be improved dramatically by registering with the system, according to NER.

In second quarter of 2002, buyers and distributors will be able to ensure that a used equipment item has not been stolen by searching against the NER database prior to a purchase, according to the organization.