What do the TPGs do if they damage a coin?

Stemming from a thread I recently posted on regarding Latex vs. Cotton Gloves, since it was a bit off-topic there, what's the procedure that TPGs follow if they drop or damage a coin? Do the TPGs mention that they damaged it? Are the risks and the subsequent costs assumed by the buyer for submitting the coin?

I'm sure that's what insurance is for, but is the TPG-provided insurance even necessary to submit the coins (despite its recommendation for high value coins, whatever $ figure is high to the submitter)?

If I submit what would be a high MS-6X grade coin, and it turned out as a much lower details grade, then are you SOL if they're not insured (assuming that insurance is not required and you didn't pay for it)?

Watching the PCGS grading process video below, the coins are graded by hand. I'm sure it's the same at NGC, ANACS, ICG, etc. So, human error / accidents seem inevitable, however rare that may be and despite the large padded work area, expertise of handling thousands of coins, etc.

After lots of buying and thinking of which coins to send, I'll be sending some coins in for the first time very soon to NGC with a "bulk" batch, so this info would be good to know.

Thanks in advance!

 

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Same thing as when your mechanic breaks something in your car during emissions. They don't say anything

 

The TPG companies must have a disclaimer on their websites or in some literature that they publish for customers (somewhere?) that relates to your question. They must have insurance to cover accidents.

I hope.

 

Good point, if they don't require insurance, then they must have a blanket insurance to cover such accidents. Though, if it happened to the rarest of the rare coins, what's the price tag on a priceless coin? I'm sure that insurance companies love to put a ("lowball") price tag on everything regardless, as that's their MO.

 

Also, what if they get fingerprints on the rims of a "plain", unreeded edge such as on the Great Britain coin below?

Do they pass it off to the next guy? lol

 

I find it hard to imagine that NGC and PCGS don't have "errors and omissions'' liability coverage. But as someone else pointed out, the insurance carrier would have all the reason in the world to lowball a claim.

 

Their "MO" is not to screw the pooch! That is just bad for business. If you think that is the case, then maybe you shouldn't submit coins for grading.

Chris

 

They say "Ooops"

 

I see their risk of damaging a coin as very low.

But I'm still curious as to what they'll do about it.

Probably more curious to see the grader's reactions lol.

These emoticons probably tell the story, in order: []

 

Oh, my friend, indemnity companies can monetize EVERYTHING under the sun, whether it be priceless cultural artifacts, "pain and suffering," ...or even human life.

 

If you have questions, it would be best to get answers straight from the horse's mouth. You can either post your questions and concerns in the NGC forum, "Ask NGC" or you can call them at 800-642-2646.

Chris

 

Oh I know they do.

The "pain and suffering" part is probably one of the most undervalued ones.

 

They've paid out on coins before. It's very rare but nothing is perfect so yes some coins have had to have been bought back out of the 10s of millions they've graded.

But for the priceless coins like that, you wouldn't have to worry. Those wouldn't go through the grading room anyway. Like anything else things above a certain value will get special attention.

The take away is really just submit your coins and don't worry about it unless something actually happens. They either have everything insured or will pay, if word got around they damage coins a lot and don't pay their submissions dry up and they cease to exist as a business.

 

So, as the submitter, I only have to worry about insuring the mail that the coins go in, to and from?

 

Also, what about damages that can be "fixed", such as a fingerprint on the plain non-reeded rims, or anywhere else on the coin?

My guess is that they'd simply send it to NCS for proper conservation and fingerprint removal. They may not even mention that sort of damage.

 

Zackly!

Whenever I've submitted coins, I have always set an insurance value based on what I think a coin will grade. If my estimate is right, then I want to be fully protected.

Sure, there are some cheapskates who try to fudge on the insurance value just to save a couple of bucks, but all they are doing is cutting off their nose to spite their face. The grading service will not pay you more than what you claim is the value if the coin is damaged or lost in transit.

Chris

 

Technically you only have to worry about insurance for the shipment there. They insure or self insure on the way back to you. PCGS usually priority mails them back which is nice since its faster and NGC will send it back registered.

 

There's no further cost to put the "actual" or estimated value next to the coins on the submission form, right? That is, there's no further cost besides passing the threshold to a higher coin submission fee, and the estimated value is an insurance cost that they incur?

 

Well said, its not always the smartest idea people have trying to slide those "regular" submission tier coins into economy. I do the same as you, if anything I may over insure a bit since you can't raise it and it can only come down from the initial number.

You are supposed to give them an estimate. Just do it honestly and you will be covered.

 

From what I hear/seen/know this is basically true in most cases; however, in a case of "major" damage they will admit to it as it cannot be denied. I was told by one TPG that in many instances he has left a note in the computer of any form of mishandling in case there is ever a claim.

I the past, I have been invited to visit the inside of two grading rooms. The floors at both were carpeted and one even had pads wrapped around the metal legs of the Silver Eagle Grading Station!

To my knowledge NO; but that is easily checked.

BINGO! cpm9ball can be relied upon for excellent advice again.

Absolute nonsense! Certain Professionals get to handle/grade the $$$$ but they are human too. ALL COINS go into the grading room from a 2010 State quarter to an 1804 dollars!

IMO, 100% correct.

One last "story" I heard from one of the "horse's" at a TPGS that cracked all of us up at the time. About once or twice a year he would hear something like "Opps oh oh" from one of the graders who is no longer there.

Also. TPGS's need to be on guard for scammers. I have heard that employees preparing the submissions for the graders at one service make notes on their computer when they observe things like a staple scratch on a coin BEFORE it is removed from its 2X2. Makes sense.