Steve -- you misunderstood my comments. I work for a record management
company that provides off-site storage, and we use a standard of $1.00 per
box for replacement. If the customer storing records with us asks for
additional coverage, their choice is either a) to provide it themselves, or
b) we will purchase additional coverage to the amount they request and add
it to their charges -- in other words, we get the coverage and they pay for
it AT OUR COST for the coverage. Liz
-----Original Message-----
From: Records Management Program [mailto:[log in to unmask]] On Behalf
Of Richards, Steve
Sent: Friday, February 11, 2005 11:12 AM
To: [log in to unmask]
Subject: Re: Third Party Storage Vendors and Disasters
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
$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
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