The following scenarios are provided to show the importance of having the proper coverage. All are real claims that have occurred along with the response from the insurance company; the names have either been changed or omitted to maintain anonymity.

If you would like to know more about how these coverages can help protect you and your business, please contact a Swarts, Manning & Associates representative.

Sour Grapes

Coverage: Property

Cause of Action: Contamination

Type of Organization: Winery

Description of Event: Contamination from cleaning solvents used in the bottling process ruins a batch of wine.

Resolution: The total loss was $60,000 worth of wine.

Bottling Bacteria

Cause of Action: Product Defect

Type of Organization: Winery

Description of Event: A vintner owned a winery overseas and discovered that the bottling facility he used was contaminated by an unknown bacteria, making it necessary for him to find a replacement bottler.

Resolution: Claim Value: $250,000

Water Damages Kitchen Equipment

Coverage: Property

Cause of Action: Water Damage

Type of Organization: Manufacturer

Description of Event: A sewer backed up into the production facility of a manufacturer of instruments for automotive applications, causing water damage to the firm’s production machinery and finished stock. The manufacturer incurred a loss of income due to the production delay and costs to clean up the production machinery and replace the destroyed stock.

Resolution: Claim Value: $325,000

Vendor Fire Shuts Down Restaurant

Coverage: Property / Business Income

Cause of Action: Breach of Contract

Type of Organization: Restaurant

Description of Event: A restaurant’s key supplier had a fire at its facility. As a result, the restaurant was forced to shut down for 3 days before an alternate supplier could bring the necessary items resulting in a large amount of lost income.

Resolution: $75,000 was paid in lost income to the restaurant.

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