THE PROBLEM
Equipment theft is widespread and costly for equipment owners and their insurers. A large part of the problem is the limited access that law enforcement has to technical information to identify a machine and because an officer is often unable to link a serial number to the correct owner in a timely fashion.
INSURERS’ RESPONSE
Insurance companies have responded to the problem of equipment theft. An important response has been the support by leading insurers of the development of National Equipment Register. Insurers recognize the importance of pre-registering equipment on NER database to help in the event of a loss. Premium discounts, deductible waivers or other considerations may be offered to equipment owners that register their equipment on the NER database. Companies involved include ACE USA, Chubb, CNA, Fireman’s Fund, Hanover, Lexington/AIG, Ohio Mutual, RLI, The Hartford and Travelers. Agents should speak with their local underwriter to discuss the company’s underwriting position.
WHAT IS THE NATIONAL EQUIPMENT REGISTER?
The National Equipment Register (NER) is a national database of equipment ownership and theft reports. This information as well as technical equipment identification support is provided to law enforcement through a 24-hour hotline manned by equipment identification specialists. Equipment owners register equipment serial numbers with NER and will receive warning decals to deter theft. A pre-purchase search of the database can be requested by anyone buying/selling/financing used equipment through NER’s IRONcheck service.
HOW DOES IT WORK?
A real life example is the best way to explain: A backhoe loader is being taken into Mexico but with some decals missing. Customs is suspicious but finds no theft reports. Because the machine has been registered with NER by the owner, the customs officer is able to identify the owner, contact the owner and establish that the machine should not be heading into Mexico. The machine is held, a theft report filed, an arrest made and the machine returned to the owner 36 hours later – no claim was filed.
WHO USES NER?
NER is used by almost every US equipment insurer, most of the largest fleets in North America and thousands of small fleets and dealers. NER also has data sharing agreements with leading equipment manufacturers. This data is made available to thousands of police agencies nationwide through long-established data sharing agreements between Insurance Services Office, the National Insurance Crime Bureau and law enforcement.
WHAT IS THE REGISTRATION PROCESS?
Simple. The equipment owner either sends NER a spreadsheet of equipment or enters it directly via NER’s secure website. Uploads for larger fleets can be automated.
WHAT DOES IT COST?
$40 for a ‘lifetime’ registration or around $1-10 per machine per annum depending on fleet size. There is also a 20% discount for those insured by an NER Partner Insurer listed above.
DOES IT WORK?
Data from NER has helped police recover over $20 million of equipment; much of this in the last 24 months.
CONTACT:
info@NERusa.com or 212.297.1805
OFF-ROAD EQUIPMENT INSURANCE INCENTIVE PROGRAM
