The facts
A complex renovation project was required on an old and historic building. Detailed scope of the project was provided to Stuart at Long Point Insurance who, in response, priced coverage appropriately after a very careful underwriting procedure.
With the project very close to completion, everything had gone smoothly so far and was due to finish on time. Linksland Construction hired a highly qualified and experienced roofing subcontractor, Kevin, who was finalizing the last section of the roof before he decided to heat some glue with a metal halide bulb. After completing his work, Kevin left the building site that evening, however when he returned the next day at 6:00 a.m., the building was demolished. Kevin realized he had forgotten to unplug the metal halide bulb when he left the day before. The bulb had failed and the particles that dropped from the fitting ignited nearby flammable debris causing a severe fire.
The result
The building was fully engulfed and a total loss. All parties involved in the project suffered from a catastrophic claim that reached a total cost of $1.2 million. The claim, including removal of debris from the site, that was covered under Victor's policy, could have been prevented by following very basic construction loss control practices.
Risk factors
Risk factor #1
Check for hot spots at the end of every working day. Are any items or tools still plugged in? Are there any areas with smoldering ambers?
Risk factor #2
All debris should be cleared and organized at the end of the day.
