Case Studies
J.S. Held Acquires Technorm, Québec’s Leading Forensic, Building Safety & Compliance Experts
Read MoreA substantial fire occurred in the mixing tank area of the machine, which fed a production line with bitumen and polymer mixture. Production could not shift to the other lines at the remaining operational plants as they were already operating at almost full capacity. The damage caused by the fire resulted in a loss of production capacity of close to 50% due to the plant being shut down for around two months while undergoing temporary repairs to restart production
The claim was made in excess of $1M, which comprised loss of gross profit, separate wages cover, and rent. Due to the long lead time for automated valves from the OEM in Europe, temporary repairs were undertaken, including installing manual valves to enable production to begin sooner.
Our production and sales data analysis showed that demand for membrane products had increased significantly in the 3-6 months before the loss due to the number of mega-projects in Saudi Arabia and the high demand for associated construction materials. Further, we understand that one of the insured’s competitors left the market due to cashflow issues due to the high working capital requirement. We undertook discussions with the insured to agree on a reasonable rate of production absent the loss. We also deducted a small amount of make-up calculated at the undamaged plants to reach the net production loss.
We observed that based on the rate of production agreed and the prevailing selling prices and gross profit rate, the sum insured was not adequate, requiring a significant proportional adjustment. Our measurement was accepted by the insured at approximately $0.4M. The permanent repairs (mainly to re-install automatic valves) were undertaken at a later date during scheduled maintenance outages with no impact on production.
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.