Liz:
I had planned to lob a bomb and then sit back and watch. Your question, and more importantly, your comment <I think vendors should be willing to
provide more coverage, at cost, to the customer requesting it.> needs to be answered by me first.
If I charge you - lets say - 35 cents a month to store one 10x12x15 inch box a month, how much insurance do you think that I should be required to provide you with for free, or at cost? $30.00? $40.00 $50.00 for that box. Think about that realistically for a minute. Do you really think that it is my responsibility to do that? Should I really be required to do anything for anyone "at cost"? How long can I be profitable providing you with that type of coverage or performing/providing a service "at cost?"
Before you answer those questions, lets look at some models first. What is a mini-warehouse facility's responsibility to you for the sofa you place in there? And your car, how much liability does the parking lot assume when you drive in and place $5.00 in the slot, to park your $25,000 car there for 2 hours? Or your dry cleaner, you give them a $50.00 shirt, and they charge you $1.75 to clean it. The liability must be limited by every company above - allowing you to PURCHASE additional coverage through the vendor, or allowing you to increase the coverage you have on your box/sofa/car/shirt through your insurance provider. Guess which one will be cheaper.
The insurance company looks at a commercial records center and the above situations entirely different than you do. You have no real say in the way it is to be covered (which policy will apply) or who covers it (you or the vendor). You do have a say in the amount of coverage you want to place on the item and what you are willing to pay for that coverage.
AND, you mentioned nothing of your insurance. Do you have it? If so, you need to have a conversation with them concerning my questions in the previous post.
SR
-----Original Message-----
From: Liz Allan [ mailto:[log in to unmask]]
Sent: Friday, February 11, 2005 12:27 PM
To: [log in to unmask]
Subject: Re: Third Party Storage Vendors and Disasters
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Your mail has been scanned by Inters can Virus Wall.
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$1.00 per box is fairly common in my experience. How do you determine how
much a box of paper is worth? The box holding the documents that are key to
a multi-million dollar lawsuit is worth plenty; the box next to it that
never moves off the shelf until it is destroyed...? And how can you tell in
advance which box is which? That said, I think vendors should be willing to
provide more coverage, at cost, to the customer requesting it.
Liz Allan, RHIA
Director of Client Programs
SOURCECORP Delivered
San Jose, CA
-----Original Message-----
From: Records Management Program [ mailto:[log in to unmask]] On Behalf
Of Mike Burlington
Sent: Friday, February 11, 2005 9:59 AM
To: [log in to unmask]
Subject: Third Party Storage Vendors and Disasters
The reason I ask those questions is at the beginning of the year our
off-site vendor contract was renewed. I noticed that in the contract it
was stated that if our boxes were destroyed that we would be compensated
$1.00 per box. I thought that was very inadequate for what type of
material those boxes contain. Now this contract was signed by our
purchasing department before the Records Dept. was started for our
division or my boss and I were hired. It fell to us just last year. I
like a lot of the questions that Steve Richards posed. Here are some
follow-up questions of my own:
Is a $1.00 a box the vendor standard?
Are the vendors willing to provide more coverage? At what added cost to
the customers?
Thanks
Mike Burlington, CRM, CDIA
Records Management
Abbott Laboratories - Ross Products Division
614-624-4339
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