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Claim Loss Examples
CNC Lathes Idled, Power Surges Short Out Controls
Machine shops rely on technology and automation to improve quality, boost efficiency and hold down costs. Electrical gear, electronic controls and mechanical equipment add up to increased exposures for costly breakdowns like these:
- Computer Numerical Control (CNC) lathes broke down when metal dust and debris accumulated on circuit cards and shorted out the control unit. Total paid loss: $154,807, including $139,303 in lost business income.
- A utility power spike damaged a metal services company’s computer network, telephones and production and shipping equipment. Total paid loss: $84,344.
- An electrical surge at another machine shop damaged two computer circuit boards, halting operations for nearly a week. Work had to be completed at another plant. Total paid loss: $52,026, including $42,541 in extra expense.
