Candy & Nut Company v. Insurance Provider
KEY INFORMATION:
Project name: Candy & Nut Company v. Insurance Provider
Client: Confidential -- Insurance Provider
Services Provided: Finance & Economic Damages, Dispute Resolution, Business Interruption, Commercial Dispute
SOCOTEC was engaged by legal counsel representing an excess policy insurance provider to assess more than $45 million in property damage, business interruption, and extra expense claims submitted by a large food manufacturing group ("Company") specializing in the processing, packaging, and marketing of candy and nut products.
The claim stemmed from an explosion and subsequent fire at one of the Company’s international processing facilities, which resulted in the total loss of significant inventory and the destruction of a critical piece of production equipment. SOCOTEC’s role involved evaluating the extent of the damage, validating claimed losses, and supporting counsel in determining the legitimacy and value of the insured’s submission.
After evaluating Company’s claims, SOCOTEC identified $10 million of adjustments for unsupported and improper property damage claims and overstated business interruption claims due to Company’s flawed lost profits methodology. SOCOTEC estimated the Company was entitled to only $3.9 million under the Excess Policy. This matter settled favorably for our client.
