Case Study

$1.6M Reduction in Pre-existing Conditions

Water Damage at Chemical Feed Water Line

Case Study

Water Damage

Services Provided

Betterment Reduction
Expert Analysis

Water Damage at Chemical Feed Water Line
Water Damage at Chemical Feed Water Line
Water Damage at Chemical Feed Water Line
Water Damage at Chemical Feed Water Line
Water Damage at Chemical Feed Water Line
Water Damage at Chemical Feed Water Line
Large industrial metal silos in a warehouse with gray walls and exposed pipes. A red ladder extends vertically. The space appears clean and organized.

The Situation

ILC was tasked with assessing the damage caused by a failure in a chemical feed water line attached to a condenser water system. This failure resulted in water being released into the mechanical room. The water flowed for approximately an hour, until the system’s pump was shut off by the insured’s contractor. The insured reported damage to multiple pieces of equipment.

Equipment Impacted

  • Electrical Switchgear
  • Chiller
  • Boiler
  • Two Air Handlers (which failed two weeks post-incident)

Value-Driven Solutions

Mechanical System Damage Assessment


ILC performed a detailed inspection of the mechanical machinery and equipment, despite limited accessibility caused by equipment removal and relocation. Our experts evaluated system components and identified which items were actually damaged as a result of the loss.

Pre-Existing Condition Documentation 


ILC conducted testing and analysis of water discovered within the chiller’s refrigerant lines and documented pre-existing conditions affecting the machinery and equipment. Through engineering evaluation, ILC determined the presence of water resulted from a secondary loss unrelated to the reported incident.

Claim Reconciliation and Cost Evaluation Expertise

ILC reconciled repair costs submitted by the insured and their representatives with independent inspection findings, developing a detailed and technically supported repair estimate focused solely on returning the machinery and equipment to pre-loss condition.

Water Damage at Chemical Feed Water Line

The Results

Independent Cause and Damage Verification


Determined that the chiller, air handlers, and boiler were not damaged by the failed chemical treatment line or resulting water release, providing stakeholders with a technically supported and defensible damage determination.

Accurate Scope and Repair Cost Validation

Isolated the actual loss-related damage and established a verified repair estimate limited to necessary restoration work, ensuring the claim reflected only legitimate damages.

Substantial Claim Cost Reduction

Determined that the cost to return the insured to pre-loss condition was $11,262.50 compared to the insured’s claimed damages of $1,635,873.55, resulting in a significant reduction and supporting an accurate and defensible claim resolution.

Case Studies

Real Claims, Real Results

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

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

Explosion at Ethanol and Ethanol Co-Products Plant

Claim Reduction Over $9M

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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

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Repair vs. Replace Significantly Reduces Claim Costs

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

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Reduced Claim Cost by over $700,000

Fire Damage with Healthcare Equipment

97% Reduction in the Claim

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Reduced Claim by Nearly $1M

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Reduced Claim Costs More Than $3.5M

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Result in Reduced Claims Cost of Nearly $3M

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Reduced Claim by $400k with Pre-existing Findings

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$11k Repair Instead of $800k Replacement

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Restoring to Pre-loss Reduced Claim by $2.9M

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Identified Failures Stemming from Inadequate Repairs

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Water Damage at Chemical Feed Water Line

$1.6M Reduction in Pre-existing Conditions

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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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