The scenario is common. A piece of equipment (medical, manufacturing, communication) is damaged by an external electrical trauma such as lightning or a power anomaly. Your insured will oftentimes provide a quotation for a replacement system. The claims handler may perform research to determine if the claimed replacement is of like kind and quality when compared to the claimed system. For this example, let us presume that the claims handler validates that damaged Equipment A is appropriately replaced with Equipment B, updated/upgraded only as time and technology mandate. Henceforth, we have a well-documented file, the insured can be paid, and we've made a proper adjustment, correct?
Maybe…or maybe not.
While we see these cases on a daily basis, I wanted to share two common cases that we also use in our CEU-approved courses.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
