Case Study

Reduced Claim by $32K

Damaged Car Wash Systems

Case Study

Equipment Damage

Services Provided

Desk Review
Betterment Reduction

Damaged Car Wash Systems
Damaged Car Wash Systems

The Situation

A car wash machine valued at $316,000 sustained significant damage after being struck by a vehicle, reportedly rendering the system beyond repair.

ILC was engaged to conduct a desk review of submitted claim documentation to evaluate repair feasibility and associated costs, as well as investigate reports that replacement parts from the manufacturer’s authorized dealer were unavailable.

 

Equipment Impacted

  • Car Wash Machine

Value-Driven Solutions

Parts Availability and Claim Documentation Analysis


Conducted a detailed desk review of claim documentation, invoices, and supporting materials to evaluate repair feasibility and validate replacement part availability. The review included coordination with the European manufacturer and U.S.-based service representatives, along with analysis of photographs obtained through subrogation channels after the damaged machinery and equipment had been scrapped.

Technical Depreciation and ACV Evaluation


A comprehensive depreciation analysis was performed to determine actual cash value based on equipment condition, age, technical obsolescence, and lack of salvageable components. Engineering evaluation supported applying 60% depreciation rather than the typical 50% limit due to the system’s obsolescence and absence of recoveruable scrap value.

Upgrade Identification and Cost Adjustment

A technical comparison was conducted between the original car wash machinery and equipment and the replacement system, identifying improvements and upgraded functionality that exceeded original system capabilities. These enhancements were isolated and excluded from loss-related valuation calculations.

Damaged Car Wash Systems

The Results

Verified Equipment Valuation

The evaluation confirmed replacement cost value documentation was incomplete and unsupported by the referenced contract, allowing for an accurate valuation of the damaged system based on verified documentation and technical analysis.

Accurate Actual Cash Value Determination

The evaluation established a defensible actual cash value of $126,371.68, ensuring claim valuation accurately reflected the equipment’s true pre-loss condition.

Claim Cost Reduction

The analysis resulted in a $31,593 reduction from the claimed amount due to incomplete invoicing and application of appropriate depreciation supported by technical findings.

Case Studies

Real Claims, Real Results

Fire Damage on Aluminum Casing Line

Solution to Repair Instead of Replace Reduced Claim By $1.5M

Breakdown of CNC Machine

Repair vs. Replace Solution Reduces Claim By $600,000

Damaged Car Wash Systems

Reduced Claim by $32K

Damaged in Transit - Corrugated Box Making Machine

Missing seals and transit mishandling

Explosion at Condo Association

$1M+ in Equipment Retained Through Repair vs. Replace

Explosion at Ethanol and Ethanol Co-Products Plant

Claim Reduction Over $9M

Explosion at Ethanol and Ethanol Co-Products Plant

Reduced Claim By Nearly $6M

Explosion in Saturator Converting Line

Prevented $12 million in Business Interruption

Fire at Chemical Processing Facility

Lead Time and Reduction by Over $15M

Fire at Livestock Rendering Plant

Uncovered $4.5M in Betterments

Fire Damage at Concrete Batch Plant

Repair vs. Replace Significantly Reduces Claim Costs

Fire Damage on Film Line

Lead Time Cut by 14 Months, Reducing Costs by Over $1.5 Million

Fire Damage on Metal Processing Equipment

Reduced Claim Cost by over $700,000

Fire Damage with Healthcare Equipment

97% Reduction in the Claim

Fire in Electrical Control Systems

Reduced Claim by Nearly $1M

Fire Loss of Life Science Equipment

Reduced Claim Costs More Than $3.5M

Fire/Water Damage at Aluminum Beverage Can Manufacturing

Result in Reduced Claims Cost of Nearly $3M

Flood Loss at Indoor Water Park

Reduced Claim by $400k with Pre-existing Findings

Freezing Pipes & Water Damage In Boiler System

Solution to Repair Mitigates BI and Reduces Claim Over $85,000

Hail Storm at Manufacturing Facility

$11k Repair Instead of $800k Replacement

Lighting Surge at Packaging and Printing Facility

Restoring to Pre-loss Reduced Claim by $2.9M

Mechanical Breakdown at Gun Manufacturing Facility

Reduced Business Interruption by 14 weeks

Mechanical Failures on Horizontal Grinder

Identified Failures Stemming from Inadequate Repairs

Tornado Hits Agricultural Equipment Manufacturer

ROM Reduced by Millions with ILC’s Involvement

Water Damage at Chemical Feed Water Line

$1.6M Reduction in Pre-existing Conditions

Water Damage to MRI Machine

Medical Equipment Repair Costs Reduced by over $100,000.

Water Damage with Fire Pump System

Reduced Repair Cost by almost $4k

The Experts Behind the Best Outcome.

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