Inventory is usually a separate part of the claim
Commercial property policies often treat the building, business personal property and stock differently, and goods you hold for customers may fall under yet another arrangement. Before anything is thrown away, find out from your agent or adjuster which coverage applies and what proof they need. Disposal without documentation is one of the most common ways a facility weakens its own claim.
The practical work is sorting. Damaged product needs to be separated from clean stock so it does not contaminate or confuse inventory counts, and questionable product needs a holding area while someone with authority decides. In a busy distribution building, that holding area competes for space with ongoing operations, so plan it early.
Racking deserves its own attention. Water itself rarely hurts steel racking, but the events around a loss can: a forklift striking an upright during hurried moves, a collapse of soaked cartons that shifts loads, heat from a fire, or debris impact from a roof failure. Damaged uprights and beams can fail under load.
Sorting product
- IfPackaging is wet but the product is sealed and water-resistantThenPhotograph, repackage if allowed, and record it as salvaged. Check whether the manufacturer or customer has rules about repackaging.
- IfThe product is food, medicine, cosmetics or similarThenAssume strict rules apply. Hold it, and ask quality staff, the owner of the goods and any relevant regulator before release.
- IfResidue from smoke is on packaging or productThenAsk whether the goods can be cleaned and tested for odor, or whether contamination makes them unsaleable.
- IfProduct is plainly ruinedThenPhotograph it, record quantities and identifiers, and keep samples if the adjuster asks before disposal.
- IfOwnership is unclear, such as goods held for a customerThenNotify the owner of the goods promptly and ask how they want damage handled.
Disposal record for each lot
- Photo of the product in place and after removal.
- SKU, lot number, quantity and unit of measure.
- Location in the building where it was stored.
- Reason for disposal and who approved it.
- Date, hauler and destination of disposal.
- Adjuster acknowledgment, if they asked to see it first.
Racking checks after a loss
| What to look for | Possible cause | Action |
|---|---|---|
| Bent or twisted uprights | Forklift impact or load shift | Unload the bay and have it evaluated before reuse |
| Dislodged or missing beam locks | Impact or hurried loading | Replace locks before reloading |
| Discoloration or warping | Heat from a fire | Evaluation by a racking specialist or engineer |
| Rust at baseplates | Standing water on the slab | Clean, check anchors and monitor |
| Damaged wire decking | Collapsed wet cartons | Replace damaged decking panels |
General information for Commerce City, not a quote or professional advice. In an emergency, call 911.