While it may be relatively straightforward to determine the cause of a loss, the quantity of a loss, and the responsibility for a loss, there are situations where it could be much more difficult to establish, to everyone’s satisfaction, the value of the loss. In other words, there will be a cheque, but for how much?
In reaching a valuation, there are very specific costs that are included, and other very specific costs that are excluded. There are also specific limits on valuation, described in more detail here, that may or may not affect a given claim. Copper Run will assist its customers in assembling the paperwork necessary to support their valuation of their loss.
There are two documents that are crucial to determining the value of a loss, the Bill of Lading for the shipment and, for trans-border shipments, the Commercial Invoice. There are also several additional documents that can be referred to for additional valuation information, such as sales contracts and purchase orders. A discussion of documents is found here.
Once the valuation process, the limits on valuation, and the relevant documents have been identified and assembled, the final step is to establish what was actually damaged or lost, and to what extent. Even items that have been damaged beyond repair may still have a salvage value, and items that remain intact despite their packaging being destroyed may be able to be sold, but at a discounted price. Inspection, mitigation, repair estimates and salvage may all play into the final definition of the loss and its value. Some of the common considerations are explored in more detail here.