Commercial claims present unique challenges for insurance adjusters and insureds alike. Often, commercial claims, particularly those involving appliances, such as commercial laundry equipment, restaurant appliances, and fitness equipment, require a thorough on-site investigation to determine the extent of damage from the alleged loss event, as well as if the items can be repaired or must be replaced.
Commercial appliances typically offer loads of repair potential, as these items are designed to withstand heavy use in a commercial setting. However, evaluating the repairability of a commercial appliance is not a simple task.
In this blog post, we'll highlight key repairability factors one should consider when evaluating commercial appliances, and how Zap Consulting, an industry leader in property damage claim investigations, has perfected the commercial appliance inspection process, assisting insurance adjusters and carriers in settling these challenging claims quickly and accurately.
Can the commercial appliance be repaired?
Commercial locations like laundromats, restaurants, and hotels utilize various heavy-duty appliances as part of their normal business operations. Inoperable equipment can result in lost revenue, inconvenience to customers, and in some cases a complete shutdown. Commercial appliances are important and necessitate a swift and accurate investigation into the claimed damages.
A commercial appliance inspection seeks to answer a multitude of questions - one of the most essential being, can the appliance be repaired? The repair question is particularly important as commercial appliances are often significantly more expensive than their residential counterparts.
No matter the type or function of the item, when evaluating whether a commercial appliance can be repaired, you'll want to consider the following key questions:
What is the extent of damage from the loss?
Depending on the source of the damage, you'll of course want to consider if the appliance has sustained physical or cosmetic damages, in addition to any damage to internal components.
For example, a commercial stack dryer may have sustained minor, repairable damage to the internal control board, but has been beaten with a baseball bat in a robbery. In this hypothetical, both the control board and physical damages are attributed to the theft/vandalism claim. Sure, the control board can be replaced, but can the physical damages be rectified to pre-loss condition? Would attempting to do so be cost-effective?
Conversely, let's say a commercial ice maker has been exposed to smoke/soot due to a fire in the restaurant. On the outside, the unit appears perfectly normal, but inside, all electrical components have been inundated and subsequently compromised from the acidic smoke exposure, rendering the unit non-functional. Would replacement of all the internal components be cost-effective?
These scenarios highlight the importance of a thorough on-site investigation to accurately assess the damages by an independent, unbiased third party. Understanding the extent of damage from the loss event is key to determining if a commercial appliance may be a good candidate for repair.
Are new condition OEM repair parts available in the current market?
Straightforwardly, for a repair to take place, new condition OEM repair parts need to be available in the current market. Thankfully, commercial appliance manufacturers and qualified repair providers typically support these models for a longer time compared to similar residential products.
After an on-site inspection, once the damaged parts have been identified, commercial appliance manufacturers and repair providers may be consulted to determine if the needed repair parts are still obtainable in the current market. At this stage of the repair evaluation process, a more specific comparative pricing analysis between repair and replacement can occur.
Are the potential repairs feasible?
Let's say at this point, you have an appliance that is not irreparably physically damaged from the loss event and you have confirmed new condition repair parts are obtainable in the current market.
You will now need to determine if a qualified repair provider is accessible in the insured's location.
Fortunately, commercial appliance service is widely available. For more remote locations, providers may be willing to travel far distances for extra travel fees. To avoid delays in the claims process, it is always a good idea to check out qualified repair providers who may be able to help. For highly specialized commercial appliances and equipment, locating the nearest qualified provider will be essential.
How can Zap Consulting help?
Zap Consulting is an industry leader in on-site damage assessments and desktop reviews for commercial and residential claims involving appliances, electronics, and HVAC equipment. Our thorough, comprehensive evaluations enable a smooth, timely, and accurate claims process for the carrier, adjuster, and policyholder.
Our experienced field technicians and in-house team of experts work together to generate fair, unbiased damage assessments with clear repair vs replacement recommendations and settlement amount recommendations. We have perfected our process to help adjusters settle claims quickly and accurately.
To learn more about our commercial appliance inspection service, reach out to a Zap Consulting expert, today.
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