THE CLAIM
 

The insured, a metal working facility, claimed damage to their manufacturing equipment consisting of CNC and manual milling machines, lathes, presses, boring and honing equipment, grinders and EDM machines when a severe fire broke out. In addition, the power distribution equipment including transformers and switchgear were allegedly damaged. The claimed replacement cost was roughly $2M. LWG Consulting was asked to verify the extent of damage and determine the best path to restore the insured's operations to pre-loss condition.

ACTIVITIES
 

LWG performed an inspection of the inventory. Despite the various manufacturers' recommendations to replace the equipment LWG concluded that the exposure to the smoke and water was not extensive enough to warrant replacement. LWG recommended a combination of decontamination and minor repairs in order to restore the equipment to pre-loss condition. Since the manufacturers had voided the warranties and service agreements, LWG arranged for third parties to provide the warranties and service contracts after the equipment had been restored.

FINDINGS
  The equipment was restored for a cost of $250,000. Warranties and service contracts were arranged which cost an additional $100,000, resulting in a total cost to restore the insured's operation to pre-loss condition of $350,000.

THE CLAIM
 

The insured, a metal processing operation, claimed that the large reaction vessel of an evaporator used to remove water from a salt byproduct of metal processing suffered a collapse. The plant was being commissioned and had just ramped up to full production a few days before the loss. LWG was to determine the cause of the failure of the vessel. The insurer's exposure included the cost to repair the collapsed vessel, business interruption and re-manufacturing of the insured's other similar vessels totaling approximately $1M.

ACTIVITIES
 

An LWG consultant who is both a professional engineer and a CFEI (Certified Fire and Explosion Investigator) visited the insured's plant and performed an inspection of the equipment in question. The scene was carefully examined, and all evidence documented. The consultant also hosted discussions with the German manufacturer of the equipment while he was on site.

FINDINGS
  LWG determined that the cause of the loss was the result of a manufacturer's defect. Since the insured did not have coverage for any type of breakdown, the claim was denied.

THE CLAIM
 

Insured claims that lightning caused damage to the software and controller of a CNC machine. Repairs attempted by the insured and their vendor did not correct the intermittent failure of the machine. The insured requested replacement for $117,000.

ACTIVITIES
 

LWG Consulting inspected the machine and performed functionality testing. The electrical system in the premises was also inspected. Technical research was conducted by contacting the manufacturer and other vendors.

FINDINGS
  It was determined that the damage and the intermittent failure were caused by an artificially generated electrical current resulting from the use of an arc welder in the building without proper grounding. Artificially generated electrical current was excluded from coverage.

THE CLAIM
 

The insured claims the theft of a number of hard disk drives, and data tapes from their offices caused loss of data including design drawings of 13,750 projects. The total claim amount was $123,000, including replacement of the equipment and regenerating the design drawings.

ACTIVITIES
 

LWG Consulting interviewed the insured and their technical staff. Paper copies of the design drawings were reviewed and analyzed. Market research was conducted to determine the cost of options to return the insured to a pre-loss condition.

FINDINGS
  It was determined that the replacement cost of the equipment should not exceed $37,000. The cost to regenerate the design drawings was not to exceed $17,000 for a total settlement amount of $54,000.

THE CLAIM
 

The insured claims that a lightning related surge, which occurred several months earlier, weakened electronic components causing intermittent failure of a digital automation system in a radio station. The manufacturer voided the warranty and recommended replacement for a total of $96,000.

ACTIVITIES
 

LWG Consulting inspected the site of the loss and tested the equipment. The system and the intermittent failure were analyzed to determine the cause of failure.

FINDINGS
  It was determined that the intermittent failure of the equipment is not related to lightning. Instead, the system would lockup as a result of incompatibility between the operating system and the automation software. LWG's report was used in arbitration proceedings, which resulted in the warranty to be reinstated and the claim denied.

THE CLAIM
 

The insured claimed that dust from construction caused overheating of components within computer equipment resulting in failure of the equipment. Replacement cost was claimed to be $74,000.

ACTIVITIES
 

LWG Consulting inspected the site of the loss and tested the equipment. Wipe samples were taken to analyze the level and type of contamination, if any.

FINDINGS
  Based on the results of chemical testing of the wipe samples, it was determined that there was no evidence of construction dust within the equipment. Failure of the equipment was consistent with normal wear and tear.

THE CLAIM
 

The insured claims that during a computer failure in a data warehousing facility caused data loss of millions of records. The total cost to reestablish the lost records was $730,000.

ACTIVITIES
 

LWG Consulting conducted technical interviews of the insured's IT personnel, the manufacturers and the programmers of the software systems. Computer logs were reviewed and analyzed.

FINDINGS
  It was determined that programming errors during the upgrade of the software caused the loss. The claim was denied and the insured used LWG Consulting's findings to subrogate against the software developer.

THE CLAIM
 

A fire occurred in a manufacturing facility. The insurance company retained an origin and cause investigator who determined the point of origin. Several electrical artifacts were found in the area of origin. The fire caused $670,000 in property damages.

ACTIVITIES
 

LWG Consulting performed a comprehensive scene examination and secured the electrical artifacts as evidence. The manufacturers were put on notice. Exemplars were purchased and tested. Destructive testing of the evidence was hosted at LWG Consulting's laboratories in the presence of representatives of the manufacturers and contractors.

FINDINGS
  Based on the results of testing and analysis, LWG Consulting formulated expert opinions as to the cause of the fire. Subrogation against responsible parties proceeded. LWG Consulting provided expert testimony in court presenting the evidence and the opinions.