Equipment Damage Consultants (EDC) provides a proven scientific approach to the assessment of actual physical damage (e.g., corrosion, electrical surge, contamination, etc.) to electronic and mechanical equipment, to determine if the reported damage symptoms are repairable, unrelated to the event, or indicative of the need for replacement. Upon this determination, EDC will provide Like Kind & Quality (LKQ) cost recommendations based on the features and specifications of the original unit and current market pricing to determine the appropriate Replacement Cost Value (“RCV”) and Actual Cost Value ("ACV") for the property. The LKQ recommendations also extend to the review of service provider invoices for reasonable and customary scope of work, materials and labor costs. These services are conducted either at the Insured’s location or through desk reviews via interviews of the Insured and their service providers.
Expert witness on electronic and mechanical property claims
Benefits of What We Do:
Time savings for claims managers, adjusters, claim specialists and claims representatives on all claims involving electronic and/or mechanical equipment.
Verification of reasonable and customary service provider labor rate and scope for repair or replacement on quotes or invoices.
Determination of claim RCV where original or claimed costs are not known.
Average RCV recommendations savings of 47% in comparison to original equipment or claimed cost.*
Approximately 25% of all HVAC lightning damage claims are found to be the result of normal wear & tear of the equipment. An additional 35% are determined to be electrical utility surge related.
Analysis of LKQ on computer claims typically results in significant cost savings due to continuing advancement in technology and lower cost for original equipment functionality.
Fixed, low cost program for LKQ reporting on educational and residential claims involving just computers and/or audio/video equipment.
Savings based on repair recommendations versus equipment replacement, where applicable.
Application of reinsurance for electrical utility surge cause of loss determination versus lightning damage.
Cost effective determination of electronic and mechanical equipment actual damages.
Expert representation of insurance company interests with service providers on IT and other electronic equipment claims.
Technically accurate, thorough and defendable investigations and reports.
Assessment of subrogation potential and salvage value with every claim.
* Based on recommended versus claimed or original costs on our 1500 claim investigations to date, including claims where the claimed cost was not known (i.e., RCV = claim cost)
How We Do It:
On-Site Damage Assessment (when cost-effective)
- Visual evaluation and photodocumentation of damages and their pathways, or lack thereof
- Chemical testing of residual contaminants (e.g. soot, water residue, etc.)
- Equipment make/model inventory
- Equipment testing, where viable
- Determination of repair / restoration cost-effectiveness
- Review of Insured's vendor estimates
- Replacement LKQ/RCV costing including labor
Desk (Remote) Assignment
- Interviews of Insured's technical representatives and equipment users
- Collection of damaged equipment inventory, makes, models, specifications and functionality
- Verification of probable cause and interview of electrical utility (for reported lightning damage)
- Collection of Insured's vendor quotes and invoices
- Interviews of each of the Insured's vendors
- Seeking additional vendor quotes (where needed)
- LKQ/RCV current market costing of replacement equipment and/or repair services
LKQ Program
- Current market LKQ/RCV costing for common electronics (e.g., computers, cameras, office equipment, appliances, etc.)
- Determination of replacement cost for new equipment with equivalent or better functionality
- For residential and educational insurance claims where original equipment makes and model numbers are known
- Fixed fee pricing based on numbers of different model units in claim (e.g. 1-3 units, 4-8 units, etc.)
Who We Do It For:
Executive, National, Regional and General Adjusters
