the lead time for a replacement power
supply is 6 months, as there are reportedly back-stock/manufacturing issues
in Germany. This ultrasound spends
75 percent of its time in the field and
generates revenue for Dr. Smith, who
carries business interruption coverage.
The vendor has quoted a replacement
for $16,000 (plus shipping and training
costs) with a twenty day lead time. Given your efforts to date, this file is ready
to adjust at current replacement cost,
while mitigating the business interruption down to twenty days, correct?
After reading this far, you have probably concluded that the answer is “no.”
We interviewed the vendor who provided the same information. We contacted
the stateside manufacturer’s distributor
directly, finding that the subject power
supplies were in stock and ready to ship
for $2,500. We shared our findings with
the vendor, who agreed to perform the
power supply replacement for $975,
plus his initial evaluation costs. The insured was returned to pre-loss condition
in 2 working days for $4,000 and was
able to better serve his clients by having
a working portable ultrasound system.
In both of the above cases, repair was
an option, while it was not originally presented as such. The claims handler’s
due diligence in retaining an expert for
a desk review resulted in a more expeditious option, which returned both
insureds to a pre-loss condition, thus
mitigating downtime and complications
to their respective businesses.
pre-loss operations for both parties.
Loss Solutions Group offers free telephone consultations on challenging
claims. We staff electrical, mechanical,
and structural engineers, as well as experts in all of the respective sub-disci-plines. If your claim is reasonable, we’ll let
you know. You owe it to yourself and your
insured to ensure that best efforts have
been provided to service their claims. G
Rich Curtis is president of Loss Solutions
Group, a nationwide expert consulting firm.
He has worked on thousands of claims
with billions of dollars of exposure since
1996. Call for your free consultation at
866-899-8756, or visit www.LossSolutions-
group.com for more information.
The best conclusion is not necessarily the quickest total loss settlement.
As you are probably aware, vendors can
provide inaccurate information when an
insurance claim is filed. While they frequently stand to make a sale in these
conditions, the quickest path to recovery might be a repair option. For Accountant Jones, who was without an operable phone system, uptime was far more
important than a new replacement. The
out-of-service ultrasound compromised
Dr. Smith’s ability to provide a working
unit to his clients. Exploring an alternate
(and viable) repair path in both cases
resulted in a more expeditious return to