The current market for steel is tough worldwide, and insurance companies that deal with damage claims in this area are really feeling the pinch. Steel can be damaged easily in transportation — either by way of marine, train, or truck — or while in storage at a warehouse that experiences a catastrophe, such as a fire or flood. In addition to these vulnerabilities, the price of steel is in flux, and in order to be fiscally responsible, insurance companies need to find value in the damaged goods that they insure by reselling them.
The Old Way
When a steel shipment is rejected by a buyer, insurance companies typically are stuck with the bill. The insured must call in a surveyor to validate the claim, and, once the cause of damage has been established, the surveyor tries to obtain the highest dollar amount possible for the damaged goods for the benefit of the insured and the insurance company. More often than not, the insurance company is taken advantage of, largely due to the surveyor's inability to widely market the damaged goods.
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