Ri$k Happens: Return to sender

Jun. 06, 2021 - By Angela Cady, AIC - Loss Analyst, ARA Insurance

A late winter storm racked the region. With help from the weather service warnings, the rental store employees were able to secure all the store’s equipment prior to the onslaught. Employees returned to the store only to find that their storage building had not fared well. The roof collapsed under the weight of the snow. This in turn damaged items stored underneath. The rental store employees filed a claim with the company's insurance carrier and the loss was adjusted according to the policy language.

A vendor was allowed to store some items in the building related to his business. Those items also sustained damage. However, the vendor was previously instructed that he was responsible for insuring the items and the rental store was not liable for any damage. The vendor filed a claim with its own insurance provider.

Everyone thought that was the end of it until the rental store received a letter from the vendor’s insurance company demanding reimbursement for what they paid out. The rental store requested a second claim for the possible liability exposure. The assigned adjuster gathered the contract outlining the responsibilities of each party. The matter is ongoing.

When duties or services, even storage, are performed for another, it is a good idea to have a contract in place outlining the terms.

This item, provided by ARA Insurance, Kansas City, Mo., contains safety tips and is intended to help readers better understand and manage risk. For more safety and risk management information, customers of ARA Insurance can log on to ReSource. Access is free, so if you haven’t signed up yet, contact your agent or call 800-821-6580.

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