Case Study

Repair vs. Replace Significantly Reduces Claim Costs

Fire Damage at Concrete Batch Plant

Case Study

Fire Damage

Services Provided

Cost Evolution
Betterment Reduction

Fire Damage at Concrete Batch Plant

The Situation

Equipment at a concrete batch plant was damaged in a fire, and an assessment was required to determine whether the equipment could be repaired or required replacement. The process involved identifying which repairs or replacements were necessary, estimating the cost to restore the equipment, developing a repair schedule, and calculating the value of the damaged equipment for both replacement cost and actual cash value.

Equipment Impacted

  • 5-Yard Portable Batch Plant

  • Structural Components

  • Electrical Components

  • Weighing System

  • Supporting Equipment

  • Conveyor System

Value-Driven Solutions

Equipment Damage and Repairability Assessment

A detailed inspection of the concrete batch plant and its supporting machinery and equipment was conducted to assess thermal damage and determine whether the equipment could be repaired. The evaluation focused on structural integrity, electrical systems, and the weighing components of the5-yard portable batch plant and assessed which systems could be safely restored.

 

Replacement Scope and LKQ Validation

Replacement estimates were reviewed and compared against Like, Kind, and Quality equipment standards. A competitive LKQ replacement quote was secured, and discrepancies in the insured’s proposal were identified, including unsupported equipment inclusions and missing mounting components.

 

Valuation Analysis and Cost Verification

Comprehensive Replacement Cost Value and Actual Cash Value analyses were prepared to establish accurate and defensible equipment valuation. Cost comparisons were conducted to assess the feasibility of repairs for salvageable components, including the conveyor system.

Fire Damage at Concrete Batch Plant

The Results

Targeted Repair and Replacement Strategy

The evaluation confirmed that specific batch plant components required replacement due to severe thermal damage, whereas the conveyor system could be restored to its pre-loss condition.

Verified Equipment Valuation

Replacement cost values and actual cash value calculations were established, providing stakeholders with accurate and defensible equipment valuations for claim resolution.

 

Reduced Replacement Cost Exposure

The LKQ replacement quote reduced projected replacement costs by more than $50,000 and identified scope discrepancies within the insured’s estimate, preventing unnecessary claim expenses.

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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