Case Study

Restoring to Pre-loss Reduced Claim by $2.9M

Lighting Surge at Packaging and Printing Facility

Case Study

Lighting Surge

Services Provided

Project Management
Repair vs. Replace

Lighting Surge at Packaging and Printing Facility2

The Situation

Three printing presses at a manufacturing plant were damaged by a lightning-induced power surge, creating a complex loss scenario. OEM parts for the outdated presses were no longer available, and estimated replacement costs surpassed $3 million, with a projected Business Interruption claim exceeding $1 million. Without a viable repair strategy, the total exposure risk approached $4 million.

 

Equipment Impacted

  • 3 Packaging and Printing Presses

Value-Driven Solutions

Repair Strategy and Vendor Verification

Industry-specific expertise was applied to evaluate the insured’s selected repair vendor and confirm their qualifications to restore the printing presses. This verification ensured that repair recommendations were technically sound and executable.

 

End-to-End Repair Oversight and Loss Mitigation

The repair process was actively managed from start to finish, including validation of repair scope, coordination of parts procurement, and oversight of restoration activities to ensure timely and effective completion while minimizing downtime.

 

Aftermarket Parts Sourcing and Repair Feasibility

Alternative sourcing strategies were implemented to locate suitable aftermarket components, allowing the presses to be repaired to pre-loss condition despite the lack of OEM parts. This approach prevented unnecessary equipment replacement.

 

printing and packaging 2

The Results

Confirmed Cause of Loss

Lightning activity was verified in the area on the date of loss, establishing a clear and defensible link between the power surge and the resulting equipment damage.

Substantial Equipment Loss Reduction

Restoration of the three printing presses was completed for approximately $100,000 compared to a projected replacement cost exceeding $3 million, avoiding a total loss scenario.

Minimized BI Exposure

By enabling rapid and cost-effective repairs, production downtime was significantly reduced, thereby limiting Business Interruption exposure and preventing the claim total from escalating toward the projected $4million.

 

Case Studies

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Freezing Pipes & Water Damage In Boiler System

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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

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The Experts Behind the Best Outcome.

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