Light Manufacturing Loss Examples
A power surge damaged two computer circuit boards, halting a metal shearing operation for nearly a week. Materials and workers were sent to another plant several hundred miles away to meet production requirements.
Property Damage: $ 9,485
Extra Expense: $ 42,541
Total Loss: $ 52,026
An AC coil in a transformer shorts out, causing a plastic manufacturer to lose power. HSB specialists helped the insured obtain a rental generator unit to reduce the interruption.
Property Damage: $ 36,799
Business Interruption: $ 88,830
Generator rental: $ 55,000
Total Loss: $180,629
A food processor's ammonia line ruptured when a compressor crankshaft and its connecting rod broke. Fresh scallops were contaminated with ammonia. Rental units were needed while the new compressor was installed.
Total Loss: $ 65,289
A surface grinder at a machine shop is damaged when it flies off the magnetic chuck and strikes and damages the spindle. Replacement parts must be manufactured.
Total Loss: $24,145.
A faulty circuit in a water pump caused a manufacturer's fire tube boiler to dry fire. The boiler was severely damaged.
Total Loss: $ 90,600
Sawdust in an electrical distribution panel of a furniture manufacturer caused electrical arcing that severely damaged the interior of the panel. Overtime was required to make up lost production.
Property Damage: $ 21,087
Business Interruption: $ 14,600
Total Loss: $ 35,687
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