Case Studies

IT Data Center

J.S. Held Releases Insights on Risks & Opportunities Expected to Impact Organizations in 2025

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The Situation

In the beginning of 2023, because of an overheating event, a fire sprinkler activated in an IT datacenter containing $20 million in equipment and flooded the rest of the building. The insured is a manufacturer of processors, and most of the equipment was proprietary testing servers and equipment. The equipment was subjected to direct water damages and potential high heat.

How We Advised

J.S. Held’s Equipment Consulting practice was retained by an insurance company to determine the scope of damages due to the water incident and to validate any issues due to potential high heat. J.S. Held physically inspected the equipment to determine what was damaged by water and to capture the configuration equipment for pricing validation. J.S. Held also reviewed event logs and temperature data from devices throughout the datacenter and evaluated any failures or anomalies that may have been tied to a heat-related event.

In addition to its Equipment practice, J.S. Held’s Building Consulting practice and Forensic Accounting practice were retained. Building consulting experts evaluated the damages to tenant improvements. Forensic accounting experts evaluated the costs for lost production due to the downtime during the initial event and triage. Forensic Accounting and Equipment practice experts worked together to determine the critical assets that affected production and to confirm the impact.

Key Contact

Troy Bates
Executive Vice President
Equipment Consulting Practice
+1 714 660 9171
[email protected]

Related Practice Areas

> Equipment Consulting - Information Technology
Our Information Technology (IT) experts evaluate systems ranging from desktop environments to expansive, multi-million-dollar data centers. We deliver objective and independent analyses of IT claims based on years of industry experience, technical expertise, and market knowledge.

> Damage Assessments
J.S. Held has globally recognized professionals dedicated to assessing property and infrastructure damage for all industries in each geographic region. We have subject matter experts in architecture, construction, engineering, seismic, building envelope, materials science, and the building code.

> 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.

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