salvage success: cargo salvage - aimuedu.org

SALVAGE SUCCESS: CARGO SALVAGE (PART 2)

JAMES SENKELESKI, PRESIDENT

MICHAEL LONGO, MANAGER

ASI SALVORS, INC.

WHAT IS A SALVOR?

Assists the carrier in the mitigation

of property claims.

ROLES AND RESPONSIBILITIES

• Represent insurance company

VITAL POLICY INFORMATION

• Control of Damaged Goods

• Level of coverage

• Endorsements

ENDORSEMENTS

• Sets clause

• Brands and Labels

• Flood

The longer the merchandise remains

in adverse conditions, salvage

recovery is significantly diminished.

TIME SENSITIVITY

• Spoilage

• Mold/Mildew

• Rust/Corrosion

COMMUNICATION

CATASTROPHE

• Policy information

• Time sensitivity

• Communication

ROLES AND RESPONSIBILITIES

• Represent insurance company

• Quantify the loss

QUANTIFYING THE LOSS

• Perpetual inventory

• Create detailed physical inventory

• Leave a copy with insured for pricing

HANDWRITTEN SPREADSHEET EXAMPLES

MS EXCEL SPREADSHEET EXAMPLES

QUANTIFYING THE LOSS

• Perpetual inventory

• Create detailed physical inventory

• Leave a copy with insured for pricing

• Verify pricing

PRICING ANALYSIS

ROLES AND RESPONSIBILITIES

• Represent insurance company

• Quantify the loss

• Salvage disposition

50.00%

42.00%

8.00%

Policy Dictates Control(Stock Dumped)

Insured Retains Stock(Buyback)

Stock Sold in SecondaryMarket

DAMAGED STOCK

* Based on ASI Salvors, Inc. marine claims historical data

HOME GOODS RETAILER

SITUATION SOLUTION RESULTS

• ITEMS STAGED PRIOR TO ARRIVAL

ON-SITE IN WAREHOUSE

• CONTAINER INUNDATED WITH

SALT WATER DURING SANDY AT

PORT

• HOME GOODS CONTAINER

RECEIVED DAMAGED

• POLICY INDICATES INSURED HAS

CONTROL OF STOCK

• QUANTIFY LOSS

• CHECK PERPETUAL INVENTORY

PROVIDED BY INSURED

• ARRANGE FOR DUMPSTERS AND

COORDINATE DISPOSAL AND

REMOVAL

• CLIENT REQUIRED PHOTOS OF

DISPOSAL

• FOLLOWED DUMPSTERS FROM

LOSS LOCATION TO DUMP AND

RECORDED DESTRUCTION

• PROVIDED PHOTOS AND REPORT

TO CLIENT IN A TIMELY MANNER

ALONG WITH CERTIFICATE OF

DESTRUCTION

• CREATED PHYSICAL DESCRIPTIVE

INVENTORY

PERFUME WHOLESALER

SITUATION SOLUTION RESULTS

• WICKING EFFECT PRESENT ON

CARTONS STAGED JUST ABOVE

WATER LINE

• WAREHOUSE FLOODED WITH 2’+

BRACKISH WATER DURING SANDY

• PERFUME ON RACKS TO BE PICKED

FOR SALES ORDERS TO RETAILERS

• QUANTIFY LOSS WORKING WITH

INSURED

• CREATE PHYSICAL DESCRIPTIVE

INVENTORY

• RE-BOXED AND PALLETIZED

SALVAGEABLE STOCK

• DAMAGED STOCK STAGED IN

ADJOINING WAREHOUSE

• INSURED WON SEALED BID

RESULTING IN A 20% LARGER

RECOVERY

• HELD SEALED BID AUCTION

• $1.5 MILLION LOSS

• INSURED OFFERED %5 BUYBACK

TO THE CARRIER

• MULTIPLE BUYERS CAME TO

INSPECT STOCK

• FAIR MARKET VALUE

CASHEW WHOLESALER

SITUATION SOLUTION RESULTS

• DAMAGES SEGREGATED BY

INSURED AT WAREHOUSE

• WAREHOUSE FLOODED WITH

BRACKISH WATER DURING SANDY

• CASHEWS STAGED FOR DELIVERY

AT WHOLESALER WAREHOUSE

• REMOVED DAMAGED STOCK TO

OUR WAREHOUSE

• VERIFIED PERPETUAL INVENTORY

BY WEIGHT

• 30% - 35% RECOVERY

• HAD MULTIPLE BUYERS COME TO

INSPECT

• RE-PALLETIZED

• OBTAINED SALVAGE BIDS

• VERIFIED UNIT COUNT AT LOSS

LOCATION

RECOVERY PROCESS

POSSESSION

• Protection

• Storage (Fees)

• Sale on site

• Time restrictions

TYPE OF SALE

• Bids (sealed, upset)

• Insured buyback

• Negotiated sale

• Internet auctions

ROLES AND RESPONSIBILITIES

• Represent insurance company

• Quantify the loss

• Maximize salvage recovery

• Assist in subrogation

SUBROGATION

• Expert witness

• Findings and reports

• Salvage recovery

Q&A

THANK YOU FOR ATTENDING!

SALVAGE SUCCESS: CARGO SALVAGE (PART 2)

JAMES SENKELESKI, PRESIDENT

MICHAEL LONGO, MANAGER

ASI SALVORS, INC.