In 2015, a waste management plant in the Middle East suffered significant fire damage. The cause was due to the spontaneous combustion of a compost heap. This is a commonly documented occurrence for compost stored in an open yard.
The client’s insurance policy did not exclude such losses, but they had to demonstrate to the insurer that they had suffered financial losses beyond the extinguishment costs, and that they owned the damaged compost, thereby sustaining a loss of stock. The client’s previous insurance broker closed the case on the matter after determining that there was no financial loss. As the newly appointed broker, the Acclaim team took over and worked to understand the cause of the loss including a site visit by our Claims Director to clear any doubts and assist the client to produce the necessary documents to support their claim for the damaged compost.
The loss adjuster’s report contained open-ended questions – these led to an extended negotiation process with all eight insurers and re-insurers, Despite this, the Acclaim team ultimately secured a collective settlement of US$500,000 for our clients.