Five sections of a production casing failed at a depth of 876m during quenching of a geothermal well, loss $15,000,000 and generation losses $4,000,000. It was suggested that the well was at the end of its economic life and the claim was eventually withdrawn.
Faulty design led to the failure of the concrete structural members supporting plant and equipment at a fertiliser plant; quantum was in excess of $350,000,000 and the claim was repudiated. Ewan Cresswell of Integra Technical Services was appointed by facultative reinsurers to mentor the handling of this claim.
Potable and wastewater reticulation (and processing risks)
A flood collapsed a bridge supporting a natural gas pipeline. Due to the lead time to reconstruct the bridge the pipeline was reinstated under the riverbed. The initial claim of circa $9,000,000 for the pipeline was negotiated at $4,600,000.
The design of the HPC (high pressure compressor) stage 17 on an ABB GT26 gas turbine was defective, and as a consequence a stage 17 blade cracked during the gas turbine running-in procedure, EAR loss $2,900,000. (DSU claimed $16,000,000 but subsequently negotiated to nil).
The vane ring, which is part of the diffuser assembly on the high pressure turbine stub shaft, suffered a high cycle fatigue failure causing an explosion inside the hot section sump area of a GE LM6000 gas turbine, machinery breakdown loss $9,000,000 and business interruption losses mitigated to nil.
A lump of milk powder oxidised causing an explosion in a vibrofluidiser that set fire to a milk powder dryer. Property damage and business interruption losses $20,000,000. My role in this loss was relatively minor, but it was my first loss adjusting assignment (1993) and I’m very grateful to the team of adjusters that were kind enough to share their knowledge and experience.
A flashover inside a rectifier transformer shut down the number five pot line at an aluminium smelter, property loss $500,000. Business interruption losses were uninsured. A screening machine caught fire inside a coal mine, plant loss $350,000. Prompt emergency fire fighting prevented a much more serious fire from occurring.
A contractor left construction debris inside pipework, which during the maintenance period damaged the membrane filters used in the second stage of a water treatment plant, CAR loss $3,500,000. Nocardia rod bacteria caused extreme foaming of the activated sludge (human effluent) inside the digesters of a wastewater treatment plant resulting in a series of ongoing losses to plant and equipment totaling $1,850,000.