Just to add to Larry's post - Records are the property of the records owner. As such, the owner has the responsibility of insuring their own property, just as they would insure their own boat or their own car - even if their boat was in somebody else's marina or their car was in somebody else's parking garage. To clarify a point Larry made - this is not "self-insurance". I know the meaning he intended but self-insurance means assuming all the risk yourself, not passing part of it along to an insurance company. Records owners need to buy their own insurance AND they need to inform their agent/broker that some of that property is stored somewhere else. Some coverage is usually provided in a property policy; an assessment should be made as to whether this amount is sufficient. For this you need a records valuation method, such as the reconstruction method Larry describes. Remediation cost is another one that is usually acceptable. While it may be wise to have a registered fire official do an inspection of the third party records facility - (just as it is wise to do an inspection yourself) - your insurance agent or broker will let you know whether this is a condition of extending coverage to your property stored at a third-party facility. 

Regarding whether it is cheaper to retrieve and image records versus storing inactive records in hard copy form, I seem to remember Fred Grevin doing a study on this and I believe his experience was very different than the one Larry describes. Fred can clarify whether I am remembering the result correctly.

If the concern of the original post was to purchase coverage for the cost of recovery of water damaged or smoke damaged records, this is a conversation you should have with your agent/broker. For that you will need good data. There are many fine records remediation companies who specialize in drying and restoring water or smoke damaged records. Contracts with those companies place you on a priority list but cost little or nothing until you call on their services. Once under contract, and armed with the data they provide regarding remediation cost, it is possible to perform a risk assessment. This computation of a realistic possible loss (onsite or offsite) due to disaster can then take place. Risk transfer always involves a balancing act - you probably will not be able to afford all the insurance you want, so clearly define the risk you MUST mitigate first and add on from there.

Hope this helps,

Jim

Jim Booth
Records & Information Management Practice Leader

Brightstone Insurance Services, LLC
Direct – 919.323.3266
Direct Fax – 914.636.0802
Main - 877.862.4755 x 3266
[log in to unmask] 
www.brightstoneins.com


Please Note: Coverage cannot be placed, bound or altered without confirmation from a Brightstone Representative. 

List archives at http://lists.ufl.edu/archives/recmgmt-l.html
Contact [log in to unmask] for assistance
To unsubscribe from this list, click the below link. If not already present, place UNSUBSCRIBE RECMGMT-L or UNSUB RECMGMT-L in the body of the message.
mailto:[log in to unmask]