Challenge

When a power outage occurred and a backup generator failed to keep a barn cool, an egg and poultry farming operation lost 45,000 hens. Not only were the birds lost, but so too were the eggs that they would have produced over time.

In preparing the property loss and business interruption insurance claims, a challenge soon became apparent: How do you quantify the loss of future egg production, and what value do you assign to a commodity product whose price changes daily? The claim was sure to be challenged by the insurer and could result in an unsatisfactorily low reimbursement.

Solution

Hylant's claim management experts worked with the client to review historical data. From that, they projected the number of eggs that would have been produced over the lifetime of the hens.

The team also worked with the insurer's forensic accountant to address the value of the lost egg sales over time in a fluctuating market. After many discussions with all involved parties, Hylant established a formula for quantifying the lost income. With Hylant's assistance, the client prepared and submitted a spreadsheet to the insurer each month for seven months showing the lost income based on the expected number of eggs laid and the selling price based on the commodities market. The result was a $550,000 paid claim.

Calculating the true value of a loss takes determination, persistence and personal involvement. As your partner, Hylant makes that commitment to you.