Insurance Claims

Sometimes insurance claims for property damage or business interruption simply must be disputed — especially in the energy industry. Our experts provide comprehensive, objective opinions for cause and origin and economic quantum assessment of insured losses for repairs, replacement, new construction, and lost profits.

Find the impact
of a setback

Here’s how we can help:

  • Business interruption (economic loss) claims due unscheduled downtime
  • Quantum of damages incurred during the transport, storage, and processing of oil, gas, refined products, and chemicals
  • Forensic investigations to determine cause and liability
  • Property damage and costs to rebuild
  • Asset valuation for insurable property
  • Technical assistance during the claim adjustment process

Case Studies

Static Electricity Sparks Dispute

April 1, 2013

This insurance dispute pertains to whether regulatory changes justify facility improvement costs that exceed replacement-in-kind. Following a fire initiated by static electricity, the owner and insurer disagreed as to whether a different and more costly design was required to ensure plant safety. The pre-arbitration mediation required expertise in applicable engineering codes, normal industry practice, and fire origin and cause expertise pertaining to hydrocarbons and static charge.

Problems with Sulfur Removal Unit Causes a Stink

October 12, 2022

An abrupt natural gas plant shutdown due to a power outage caused major equipment damage, and a faulty repair followed. The failed repair required additional material replacement and repairs. Baker & O’Brien was retained to assess the circumstances of the initial equipment failure and evaluate the cause of damages during the repair. Our expert report was used during the mediation hearing, and the parties settled the claim.

Mother Nature Intervenes and Causes a Business Interruption Claim

July 1, 2016

An accident in a busy ship channel closed shipping traffic for a number of days, resulting in refineries and chemical plants having to adjust process rates to avoid shutdowns. Baker & O'Brien assessed the reasonableness of a refiner's business interruption claim based on lower crude throughput, lower secondary processing, and ship demurrage charges. Our independent review of the refiner's actions and quantum of the losses figured in to negotiating a settlement.