Case Studies
J.S. Held Acquires Technorm, Québec’s Leading Forensic, Building Safety & Compliance Experts
Read MoreThe insured’s cement production comprises two ball mills: Cement Mill 1 (CM1) and Cement Mill 2 (CM2). Cracking was discovered in the girth gear of CM1, leading to an initial period of lost production while the crack was repaired. A new replacement girth gear was ordered from the original equipment manufacturer in Europe due to fears that the repair would not hold, but the lead time was 9-12 months. Production continued largely unaffected in the meantime. However, the repair failed about 8 months later, resulting in a second outage until before the end of the 12-month Maximum Indemnity Period (when the new girth gear was received and installed).
The insured initially submitted a claim of over 500K tons worth almost $4M based on the budgeted maximum throughput of the cement plant. We observed that the projected volumes historically had fallen short of budgeted capacity by 5-10%. When the insured was operating with the temporary repair, we felt production capacity was sufficient to satisfy sales demand due to lower summer demand and availability of CM2, even if CM1 had to operate at reduced capacity. Hence, we did not measure any volume loss during the intervening period and only measured losses during the two periods CM1 was shut down. We also had some differences in valuation due to the rate of gross profit applied (accounting versus policy basis) and the knock-on effect on the adequacy of the sum insured. Based on our discussions with the insured, J.S. Held’s measurement of $2.75M was accepted as part of the final settlement.
Daniel Thorpe
Executive Vice President
Forensic Accounting - Insurance Services
+971 56 658 3620
[email protected]
> Business Interruption / Lost Profits
We provide specialized expertise in the quantification of damages related to claims and disputes involving business interruption and lost profits. Our team combines their financial expertise and diverse backgrounds to effectively evaluate the insured's/claimant's operations and industry/market-specific factors, to quantify interruptions and lost profits.
> Forensic Accounting
Our Forensic Accounting Practice includes Certified Public Accountants, Certified Fraud Examiners, Certified Financial Forensics experts, and other financial experts who specialize in financial investigations, dispute resolution, and regulatory compliance. We deliver the truth behind the numbers in financial matters involving insurance claims and disputes, business interruption/lost profits, cyber damages, Delay in Start-Up (DSU) / soft costs, extra expense, family disputes, fraud, labor & employment disputes, personal injury damages, and bankruptcy/insolvency.