Relying upon the Original Equipment Manufacturer (OEM) or their representatives to provide unchallenged loss assessments generally results in unjustified replacements and excessive claim settlements. I have found that over 80% of equipment/machinery that OEM’s declare as “irreparable” are, in fact, candidates for restoration. Historically, I’ve found that equipment/machinery can routinely be restored for approximately 70% of actual replacement cost. While the potential cost savings for insurance companies are significant, most Insurance Adjusters aren’t aware of the five (5) Golden rules of communicating with OEM’s used by equipment/machinery recovery experts.
Rule #1 – Keep the Sales department out of the picture.
Under normal circumstances it would be hard to imagine NOT turning to the manufacturer if you had questions about your equipment or machinery. The same applies to disasters, but with a significant caveat – stay engaged with the “Technical Support” staff and don’t let them hand you off to the Sales staff until the actual conditions are established.
Rule #2 – Provide an accurate picture of the situation.
It’s easy to understand why someone would conclude that everything must be replaced when they’re told only that the equipment “was in a major fire”. A much different opinion will be presented once they understand that the equipment wasn’t actually part of the fire, but simply exposed to light smoke.
Rule #3 – Ask the right questions.
Following-up with “please explain your position” when confronted with opinion-based recommendations (such as “smoke will damage electronics”) will result in more accurate assessments and provide recovery options not normally communicated. Also, asking the OEM whether they can guarantee the operations of the equipment will result in the same answer no matter when it’s asked! The absence of a guarantee does NOT constitute a factor in the assessment process.
Rule #4 – Insist on a physical inspection
Unless you’re able to provide detailed data (photos, technical analysis/reports, etc.) to the OEM, any replacement recommendations they provide should be reviewed with skepticism. Engage independent experts to conduct physical inspections if the OEM is unwilling and/or unable to provide the service.
Rule #5 – Insist on a detailed report
As long as you asked the right questions and the assessments were based on actual conditions, the OEM should be able to support their recommendations with credible data. If the OEM (or their authorized service provider) refuses to reasonably support their recommendations you’re likely dealing with an OEM that’s more concerned about making another sale instead of helping a client overcome a challenge.
As long as you can get to the right person and follow the Golden Rules chances are good that you’ll obtain a fair and reasonable assessment from the OEM without engaging an outside expert. In the rare situations where the OEM is unreasonable or you’re dealing with extraordinary situations we’re here to help.
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