Case Study

Repair vs. Replace Reduced Claim By Nearly $150,000

Escalator Equipment Breakdown

Case Study

Expert Analysis/ Solution Based Results

Services Provided

Cause of Loss
Repair vs. Replace
BI-Mitigation

Escalator
escalator
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The Situation

A two-story retail store experienced a complete failure of one of its escalators, rendering it inoperable for approximately six months. Initial troubleshooting efforts by the maintenance provider were unsuccessful, and the escalator repeatedly shut down after only a few seconds of operation, displaying a handrail speed deviation fault. Repair efforts included removal and attempted refurbishment of the controller; however, the issue persisted. The OEM advised that the controller had been discontinued, leaving the insured with limited options. Two modernization proposals were presented, ranging from approximately $158,000 to $225,000, both involving significant mechanical and electrical upgrades.

 

Equipment Impacted

  • Escalator System
  • Controller
  • Drive System
  • Handrail System

Value-Driven Solutions

Root Cause Identification

An oil analysis confirmed that the gearbox failure resulted from the use of incorrect lubricant. Viscosity levels were outside manufacturer specifications, leading to internal wear and component failure.

Technical Validation of Repair Scope

Coordinated with the OEM and specialists to evaluate repair vs. replace options, confirming that full gearbox replacement was the most appropriate and cost-effective solution.

Defensible Documentation

Provided clear, evidence-backed findings and cost validation to support claim handling and ensure alignment with industry standards.

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The Results

Full Restoration

Installation of a programmed replacement controller restored the escalator to normal operation.

Reduced Claim Exposure

Final repair cost was $45,000, avoiding over $150,000 in unnecessary modernization costs compared to initial proposals.

Minimized BI

Identified a targeted repair solution that restored service quickly, avoiding delays from full modernization.

 

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

Commercial Bakery

Improper Maintenance Avoided Over $30,000

Damaged Car Wash Systems

Reduced Claim by $32K

Damaged in Transit - Corrugated Box Making Machine

Missing seals and transit mishandling

Escalator Equipment Breakdown

Repair vs. Replace Reduced Claim By Nearly $150,000

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

Liquid Egg Packaging Equipment

Actual Cause of Loss Determined Serviceable

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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