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Independent Appraisal
It can help to protect your business.

In cases of fire or theft, there are only two ways to provide proof of assets to an insurance company. The first is with an exhaustive paper trail, including all relecant receipts and invoices. In the case of theft, this is a viable but time consuming procedure. In the case of fire, chances are that the receipts and invoices went up in flames along with everything else. The other way is to have an independent appraisal done.

Tony Auchincloss is the founder of Tool Inventory and Appraisal Systems, which specializes in providing appraisal and inventory documenting services in various industrial settings. Tony says that the starting point fo the business took place in 2000, when he was a MAC tool distributor in Barrie, Ontario.

"I came to work one morning to find out that the tool truck had been broken into, and somewhere int he neighbourhood of $30,000 worth of equipment was missing," says Tony. "I put in a claim with my insurance company and the very first thing the adjuster said was 'Prove to my what was in your truck'."

Easier way
Proving exactly what was stolen proved to be easier said than done. The claim was eventually paid, but not until Tony had spent about eight weeks going through every single invoice from MAC and receipts for everything he had sold.

The time and effort he expended started Tony thinking that there might be an easier way.

"I got to thinking 'How can this be made simpler?' because I knewt hat I wasn't going to be the last person that this happened to," says Tony. "I started talking to claims people at different insurance companies and asking exactly what kinds of proof they would require if someone has a theft or a fire. I also went to the police and asked what information helps them find tools and equipment when they are stolen.

All told, Toney spent about six months on finding a solution to this problem. What emerged was a complete appraisal and inventory program. To call the appraisal process comprehensive is an understatment.

"When we are on an appraisal, we physically touch everything in the shop. Drain pans, exhaust hoses, everything," says Tony. "It usually takes about 30 hours for the whole appraisal.

In that 30 hours, every single tool and every piece of equipment comes under scrutiny. Serial numbers are photographed and recorded, tools are validated and assigned both a list price and actual cash value, and a 20-minute video is also shot documenting the business and its contents.

Right level
When the process is finished, Tony Delivers to the customer documents and a CD that includes all the information an insurer could possibly require to process a claim quickly and smoothly. It even documents the phone and alarm systems. The customer also receives a spreadsheet they can use to maintain the inventory process. A low cost yearly update is all that is needed to remain current after the initial appraisal is complete. The process also helps business owners to determine the right level of insurance coverage.

"One thing I've found is that many automotive repair facilities are either under insured or over insured. As well, some business owners have indicated that the appraisal has helped them to secure lines of credit with financial institutions and finalize the sale of a business," says Tony. "What I do is give them and accurate value for their business."

For information on Tool Inventory and Appraisal System Inc., please visit www.toolappraisal.com or contact Tony directly at [email protected]

Mike Davey
[email protected]

Photo Caption: Tony Auchincloss and Mark Deerskin. Mark is the owner of Erskins Service Centre. Having an appraisal done has saved the facility over $2,500 a year in insurance costs.