On April 2013 a large paper manufacturing client reported to Bindcover claim solution that their stock was affected by rainwater that entered the warehouse due to overflow of the drainage. Significant quantity of finished paper roll stocks on the bottom stack was affected by water. The insured also reported that the buyers cancelled their purchase due to delayed delivery.
The insured encountered a number of problems in this claim: how they segregated the damaged stocks (due to limited available warehouse space), potential liability arising from disposal of salvage and whether they are able to recover the lost profit due to cancellation of sales by the buyers.
Bindcover consultant was able to arrange simultaneous scheduling for stock count and salvage disposal process, thereby the interruption to warehouse operation could be minimized. With our expert advice and technical assistance on interpreting the policy clauses, the Insured were able to recover the lost profit and retained full control of the process of salvage disposal.