Equipment Loss

Major Equipment Loss at Printing Press

14 April 2022

Envista's Major Loss team was called in to investigate damage to equipment at a printing press. The building and equipment were full of smoke and soot, and our interdisciplinary team was tasked with determining whether equipment needed to be repaired or replaced for the least amount of business interruption. Both timeframe and cost were factors in the investigation.

The Investigation

The loss occurred because a motor within a cardboard/paper baling/recycling machine had shorted out, which caused sparking and overheating of paper bales.

Envista's team began cataloguing and offering solutions to mitigate the extensive equipment damage that occurred. Our engineers and equipment loss consultants evaluated more than 300 pieces of equipment, such as:

  • Printing press lines
  • Air compressor equipment
  • Inserter lines
  • Shipping/cutting/packaging equipment
  • Graphics equipment
  • Power distribution equipment
  • General plant equipment
  • IT equipment

The team performed wipe samples on all equipment, using ionic contamination testing to quantify the extent to which the equipment had been exposed to environmental contaminants. The results confirmed varying levels of exposure throughout the facility.

Following testing, the team made recommendations as to which equipment could be repaired or restored and which equipment needed to be replaced. After discussing options, the insured decided to move forward quickly.

Cleaning and Restoration

Envista brought in AREPA, its equipment restoration team, as well as the original equipment manufacturers (OEMs) to work on the loss. AREPA's team has extensive experience working with OEMs since collaborating with them can be one of the quickest ways to get a facility and its equipment back into production following events like this loss.

The OEMs expedited the disassembly of their printing press equipment so that AREPA could restore all of the exposed components. Following the restoration work, the OEMs reassembled the components, conducted testing, and assured that all the equipment was back in working order.

Results

After the facility was able to return to normal operations, cost analysis revealed that the insured had saved $10 million following Envista's investigation and restoration process. By analyzing the cause of the loss and the extent of the damage, as well as providing expedited options for repairing or restoring equipment, Envista's Major Loss team saved the facility months of time, as they did not have to wait for full replacement equipment to be ordered and delivered. All the insured's customers received their product with minimal delay.

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About The Author
Keith Nygaard
Keith Nygaard
Senior Project Consultant
Major Loss

A Senior Project Consultant that provides expert consultation to the insurance and legal communities in matters of high tech equipment losses, including equipment valuation, damage assessment, causation, repair and salvage. With over 20 years of experience in multiple industries involving design, manufacturing, and project management, he performs electrical and mechanical engineering evaluation and testing functions for small businesses to multi-billion dollar companies both in the U.S., Canada, and Asia.

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