Location: Lac Megantic, Canada
Scope of Engagement:
- Measurement of business interruption loss resulting from an explosion causing a two-year shutdown at a particleboard manufacturing facility;
- Measurement of increased costs of working to import product from subsidiaries and purchase product from competitors in order to mitigate the loss of revenue;
- Measurement of the property damage expenses incurred for the demolition and reconstruction of the particleboard manufacturing facility using both a “time and material” and “individual project bid by contractor” methodology.
- Business Interruption and ICOW in excess of US$100 Million
- Property Damage in excess of US$150 Million
- Identified impacted global market prices as a result of the size and market share of the affected facility;
- Worked with market experts in determining that the declining US housing market would not have supported the insured’s forecasted production volumes;
- Calculated extra expenses incurred due to changes in certain manufacturing processes during the period of indemnity;
- Worked closely with a multidisciplinary team to provide a comprehensive analysis of affected revenue and the impacts to profit.