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Manufacturing Industry Project Recaps: CNC Machine Breakdown

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ILC Assignment:
  • Inspect insureds damaged machine.
  • Determine if the machine is restorable to pre-loss condition.
  • If restorable, determine the scope of work to be completed, cost, and timeframe.
  • Provide RCV and ACV valuation for the damaged equipment.
ILC Inspection Details:
  • ILC thoroughly inspected the machine to determine if it was restorable to pre-loss condition.
  • ILC reviewed the new replacement quote of $750,000 provided by the insured.
  • ILC noted damage to the CNC spindle.
Summary:
  • The loss was caused by an operator error where the spindle crashed into the X-axis, not a defect on the machine.
  • ILC determined the machine loss was feasible to restore to pre-loss condition.
  • ILC provided an ACV valuation of the equipment.
  • ILC obtained a repair quote that was $616,000 less than the insured supplied replacement quote.
  • ILC believes that once the B-axis is replaced and the geometry is adjusted the machine will be back to pre-loss condition and functionality.