Case Study

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

Breakdown of CNC Machine

Case Study

Machine Breakdown

Services Provided

Repair vs. Replace
Expert Analysis

CNC Machine Breakdown Image

The Situation

ILC machinery consultants were engaged to evaluate damage to a CNC machine at a concrete batch plant following an alleged mechanical failure. The objective was to determine whether the machine could be restored to pre-loss condition, define the scope and cost of repairs, establish a repair timeline, and provide accurate Replacement Cost Value (RCV) and Actual Cash Value (ACV) valuations.

Equipment Impacted

  • CNC Machine

Value-Driven Solutions

Restorability Evaluation

A thorough inspection and engineering assessment were performed to evaluate the condition of the CNC equipment. The examination process focused on identifying failed components, verifying operational integrity, and determining whether restoring to pre-loss condition was technically feasible.

 

 

Accurate Cause of Loss Determination

Technical analysis of the damaged spindle and surrounding machine components was conducted to identify the origin of the defect. Operational and mechanical factors were reviewed to determine whether the damage resulted from internal equipment failure or external operational influences.

 

Repair Strategy Development

An extensive vendor qualification process was performed to identify specialized repair providers capable of restoring the CNC equipment to pre-loss condition. Repair scope, cost projections, and restoration timelines were evaluated to ensure an effective and reliable repair strategy.

 

Breakdown of CNC Machine2

The Results

Operator Error Identification

The investigation confirmed that the machine defect was caused by operator error rather than an internal mechanical failure, providing a defensible cause of loss determination.

Confirmed Equipment Restorability

The evaluation determined that restoration of the CNC machine to pre-loss condition was feasible, allowing stakeholders to proceed with repair rather than replacement.

Significant Claim Cost Reduction

A qualified repair solution was secured with a total repair cost of $134,000 compared to the insured’s replacement estimate of $750,000, reducing the claim by approximately $616,000 while restoring full machine functionality.

 

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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