A public school insured through McGriff was struck by lightning, causing extensive damage to the air conditioning compressor and main server for the building’s maintenance system. The claim was reported under their property policy, and the carrier‘s adjuster determined the system to be a total loss. It was also clear the client would need to lease temporary chiller units to keep the building cool. Although school was not in session, extreme heat would damage computer equipment and could potentially damage the furniture and other contents. The carrier only offered $152,609 for a replacement air conditioning system of like, kind and quality. Recognizing it would be difficult to replace the system for this amount, the client reached out to their McGriff account executive for assistance.
The account executive immediately engaged a representative from the McGriff Risk Services Claims Triage team to assist. After coaching the client’s director of maintenance to obtain potential replacement estimates for the damaged equipment, it was determined there were no units available of like, kind and quality for the settlement offered by the carrier. Discussions with the insurance carrier ensued and the adjuster agreed to replace the equipment with a compressor and server of similar size, and an increased efficiency, at a cost of $268,988. The consultant also asked the adjuster to include the additional expenses the client was facing involving the rented equipment, necessary re-wiring for the new unit and heavy equipment needed to deliver and install the air conditioning compressor and server.
The client determined the best use of taxpayer monies was for them to upgrade the equipment and purchased a unit at a cost of $427,800. To have the equipment installed before the school year began, it was necessary for the school district to finance the purchase until the claim was settled. As agreed, the carrier paid $268,988 towards the replacement equipment and included payment of $51,579 for the extra expenses. In light of the claim processing delays and the interest charges the client had to pay, the consultant requested the carrier waive the $10,000 deductible, which they agreed to do as a courtesy. The advocacy provided by the Risk Services claims triage specialist resulted in a claim settlement for the client of $177,976 more than was originally offered.
Disclaimer: Individual results will vary.
Insurance products and services offered through McGriff Insurance Services, LLC, a subsidiary of Truist Insurance Holdings, LLC, are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may go down in value.
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