Question
They make arrangements to recoop as much as possible here:
National Productions Closeouts and Liquidations
Recooping the loss
Here's an example I came across while search for other info on Fleming Foods:
FLEMING FOODS
Posted On Nov 17 2002
Offer ID #: 444
CASE LOT GOODS THAT ARE BROKEN
IF YOU ARE A STORE OWNER AND WANT TO FILL YOUR STORE WITH FOOD ITEMS...BUT CAN'T PAY WHOLESALE PRICES,...
My question would be, if the shipper/receiver has recovered the loss by way of a claim against the carriers cargo insurance, is it legal to then "auction" the damaged freight off to recoop additional funds? I would suspect the Insurance company may have a say in this and will copy this to the Insurance forum. Wanted to know if any of you were aware of this and knew anything additional about it?
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Answer
What often happens when the insurance company goes in to settle this type of claim is that the damaged product needs to be disposed of. The insured has the option to retain the salvage. It's value with damage is normally deducted from the settlement check.
Example:
Load of wiggets - Value $75,000
Wiggets after damage from load shift - Value $15,000
Insured wants the load (because they figure they can get more than $15,000 for it). Insurance pays $60,000 and insured keeps the damaged cargo.
If insured is successful, they will recoup $15,000 or more. If not, they'll be short.
Hope this helps.