Stock Loss – Large Commercial Property File


We were asked to investigate the theft of a trailer containing over $200,000 worth of desktop computers. It was reported that the merchandise had been stored temporarily in a truck while the insured’s warehouse was being renovated, and that the truck had been stolen over the weekend. Police discovered the empty truck a few days later.


When Williams Meaden & Moore stepped in, we were informed that there were no bills of lading or shipping manifests to detail the truck’s contents. The content description was based solely on the insured’s assertions. Our experts were asked to comment on the reasonableness of the quantum of the stock loss claim. We were able to gather accounting purchase, sales, and inventory information to facilitate the performance of a rollforward inventory calculation, as well as a comparison to actual year-end physical counts before and after the loss date.


By noting the beginning inventory, plus purchases less units sold, we arrived at an inventory that actually approximated the physical count remaining after the claimed loss. We determined that the insured did not appear to have suffered a loss of computers. Upon presenting this information, the insured withdrew the claim.