Case Study

Coordinated testing of the reported failed part against an identical, brand-new part confirmed that the failed part was serviceable when calibrated properly per OEM instructions

Mechanical / Electrical Failure

Case Study

Fire

Services Provided

Technical Consultation
Cause of Loss Analysis
Component Testing & Validation
Laboratory Oversight
Defensible Technical Reporting

The Situation

ILC inspected the insured’s dust collector, which had been involved in a fire, determined its restorability to pre-loss condition, assessed the scope of work, estimated costs, and established a timeframe for the restoration process. Additionally, we provided both Replacement Cost Value (RCV) and Actual Cash Value (ACV) valuations for the damaged equipment.

Equipment Impacted

Dust Collector
Fire Suppression System
Ductwork

Value-Driven Solutions

Component Testing & Validation

ILC engineers developed and provided a testing protocol, which was coordinated with an independent laboratory for testing of the reported failed transducer. Testing of the transducer confirmed that it was not properly calibrated per the OEM instructions and was not functional during initial testing.

Comparative Analysis

Testing of the subject transducer used with the insured’s machine demonstrated that the unit was not properly calibrated. As a result of these findings, ILC obtained a new transducer and calibrated it to match the non-calibrated conditions of the original unit, which had been considered a possible cause of the malfunction. As with the first unit, the new unit also demonstrated no functionality when calibrated in the same way as the first transducer. Further testing showed that the recovered transducer demonstrated repeatable performance characteristics on consecutive days of testing when calibrated properly per the OEM’s instructions.

Calibration Review

During initial operations, improper calibration was identified as the source of non-functionality.

Engineering Oversight

Developed and provided oversight of testing with multiple experts to ensure defensible and repeatable results.

The Results

Definitive Replacement Determination

The evaluation confirmed that restoration of the dust collector to pre-loss condition was not feasible, allowing stakeholders to proceed with a replacement strategy supported by technical findings.

Significant Replacement Cost Reduction

An LKQ replacement quote was obtained that was $98,205 less than the insured’s submitted proposal, which was determined to represent an upgraded and oversized system exceeding the original equipment specifications.

Accurate Equipment Valuation and LossPrevention Support

A defensible ACV valuation was established while providing guidance to reduce future loss potential through recommended fire protection and system maintenance improvements.