Eliminated a Potential 3 to 4 Million Business Interruption Claim
This loss originated from a roof leak and partial roof collapse. The insured is an importer and distributor of powder and liquid chemicals, additives and enhancers for the cosmetic and food industries. Corrugated drums of product were soaking wet and collapsed. Also, total exposure for the carrier exceeded $2.6 million. The insured couldn’t replace the imported product quickly enough, so we developed and oversaw a procedure where the product was redrummed rather than salvaged. This also eliminated a potential business interruption claim. Over a 3 ½ week period, we processed all the stock.
Final result? $63,000 (2%) worth of product was found unusable, the rest went back into the distribution stream. The insured also accepted a 20% salvage credit on the unusable product. Ultimate net loss: 50K.
Rapid Response Team Reduced the Gross Claim
Shortly after a natural gas leak was detected and the store evacuated, an explosion ensued rupturing sprinkler lines and strewing contents out the front doors. We employed our rapid response team and quickly removed the salvageable stock in conjunction with the insured’s safety personnel. Inventories were completed after stock removal, further documenting and reducing the gross claim.
Gross Salvage Sale of Over 82% of the Current Value
When a national galvanizing firm sustained a severe fire to one of their facilities, we were contacted to liquidate the 1.5 million lbs. of Zinc in their 50-foot, hot-dip kettle which had solidified into a solid block. After re-heating the kettle and pumping the contaminated Zinc into steel barrels, we distributed our comprehensive bid package to our Tier One metals buyers, conducted core sampling, buyer inspections, and held a sealed bid sale. The results of our sale: a gross salvage sale of over 82% of the current value of Zinc on the London Metal Exchange! The carrier was so impressed with our professional services, they subsequently engaged us to sell the scrap metal from the building demolition for an additional superior salvage return!
Working with Health Authorities to Preserve Salvage Value
After a stockroom fire at $1,000,000 Grocery Store, local health officials intended to order the destruction of nearly all grocery items. After meeting with the authorities and offering to ship the affected stock “under embargo” to our buyer’s facility to be inspected, the RCF Protocols were approved. Upon inspection and clearance at our buyer’s food warehouse, Health Authorities released the vast majority of the stock to RCF for sale resulting in a salvage return of over $350,000.
Measuring the Contents Loss at Over 25 Separate Locations
When a severe flood affected over 25 locations at a Major City Public School System, the market assigned RCF to inspect and inventory all damaged contents. By deploying our professional inventory team and coordinating with the School System’s Risk Management Department, RCF completed simultaneous inventories at the different loss locations, researched unit pricing and expeditiously provided our fully documented inventory and reports to the complete satisfaction of the insured and the carriers.
Immediate Response and Plan of Action
When a tornado damaged 75% of the roof over a 400,000 square foot furniture manufacturing facility, immediate response was required to separate damaged inventory and protect the stock from further water intrusion RCF was on-site within hours to coordinate and supervise the inventory, separation, and removal of affected stock for sale. As a result of our involvement, the insurance company’s contents claim was fully documented and salvage sale was in excess of $600,000.