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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.