It was Nov. 2003, when the electric service equipment feeding a manufacturing facility failed, causing a "direct and catastrophic" power surge that resulted in a fire within one of the machines in the plant. The damage to the electric service equipment was repaired by the utility company personnel and power was restored to the facility on the same day of the loss. What happened next?
The insured's business ran three shifts and fulfilled a busy schedule of orders. Failure of one or more of their machines caused significant interruption to their operation and led to potentially significant loss of business.
The insured immediately contacted the insurance company and reported the loss, providing a description of the events involved and the financial impact that would be suffered if repair or replacement of the damaged machine did not occur quickly. The assigned claim adjuster immediately dispatched a representative (not necessarily a qualified expert) to the site of the loss to investigate and verify the damage. Since it was determined that the machine should be replaced, the insured successfully identified a suitable replacement, for which the insurance company approved and paid.
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