Candy & Nut Company v. Insurance Provider
KEY INFORMATION:
Project name: Candy & Nut Company v. Insurance Provider
Client: Confidential -- Insurance Provider
Services Provided: Business Interruption, Finance & Economic Damages, Dispute Resolution, Commercial Dispute
SOCOTEC was retained by counsel for an Excess Policy insurance provider to evaluate $45 million of property damage, business interruption, and extra expense claims sought by a large company group (“Company”) in the business of processing, packaging, and marketing candy and nuts. An explosion and subsequent fire at one of the Company’s foreign processing plants destroyed inventory and a key piece of processing equipment.
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.
