Business Interruption Loss – Equipment Breakdowns


A plastic recycling plant experienced multiple equipment breakdowns as a result of extruder malfunctions.


Williams Meaden & Moore was initially retained by the insured through their broker. Our team went onsite to see the damages and meet with all parties involved. The insured had raw materials stockpiled on site, and the capacity to make up lost production. The insured incurred extra labour expenses, since an extra work shift had to be added to catch up on orders.


Our team factored all the extra expenses into the loss and calculated a business interruption loss of approximately $130,000.

Later, following a subsequent business interruption, our experts were retained by both the insurer and insured in a joint assignment, thanks to our meticulous analysis during the previous claim. We once again factored in all extra expenses for additional work, and calculated a business interruption loss of approximately $180,000. Both cases were resolved early, since business interruption calculations showed paying expediting expenses would limit the business interruption claim. The second claim resulted in a commercial settlement between the parties based on our analysis.