Baker & O'Brien, Inc.

Services

Service Details

Property Damage and Business Interruption Insurance Claims

Baker & O'Brien consultants are frequently retained as consulting or testifying experts and have been qualified to offer evidence in many insurance-related matters involving the energy industry.  Services to the insurance industry include:  (a) valuation of assets for purposes of determining insurable values; (b) forensic investigations to determine cause and liability; (c) estimates of property damage and cost to rebuild; (d) business interruption claims due to accidents or other unscheduled downtime; (e) estimates of loss incurred during the transportation, storage, and processing of oil or gas; and (f) technical assistance in the claim adjustment process.  Our insurance industry clients have included some of the largest underwriters and brokerage houses in the world.

Related Experience

Related Experience
Ammonia Plant Insurance Dispute
Assisted in evaluating insurance claims asserted by a major ammonia manufacturer.  Work included evaluation of the technical basis for claims involving construction defects and warranty work amounting to $3 million.  Assisted in documenting claims, inspected the plant, evaluated project records, and reviewed maintenance records.  
EPC-related, Industry Practice/Standard of Care, Operations/Maintenance
Business Interruption Damages Claim by Concrete Supplier
Assisted in a dispute between a concrete products producer and marketer against an oil refiner for damages allegedly incurred as a result of an incident at the oil refinery.  Examined the timeline of the incident and provided an independent damage estimate.  
Business Interruption, Industry Practice/Standard of Care, Operations/Maintenance
Business Interruption and Construction - Refining
Monitored engineering and construction efforts undertaken to rebuild production facilities damaged by fire.  The engagement was to ascertain the appropriate construction period for business interruption claim purposes and to facilitate the incident root cause analysis.  Activities included daily site inspections, regular consultations with plant engineering and construction personnel, progress assessments, and development of independent project schedules.
Industry Practice/Standard of Care, Operations/Maintenance
Chemical Plant Insurance Claim Support
Provided comprehensive technical and accounting support for a property damage claim settlement and analysis for a chemical manufacturing plant that was damaged during a hurricane.  Work included review of all repair cost estimates and invoiced repair invoices, as well as analysis of claimed damages discovered and submitted post-recovery.  Assistance was also provided during final claim settlement negotiations.  
Business Interruption, Property Damage
Crude Oil Processing Contract Dispute
Served as expert witness concerning a dispute between an international oil trading company (Trader) and an independent refining company (Refiner), between whom there was a crude oil processing contract.  The Trader alleged that the Refiner misappropriated products to its own account.  Analyzed the refinery production and product disposition under each processing deal over a period of three years and calculated the damages under the alleged misappropriation.  Prepared an independent detailed damages claim for insurance purposes and defended the claim at trial.  
Commercial Terms Review, Expert Witness/Testimony, Pricing, Product Quality
Defective Product Lawsuit
Provided an expert report concerning a dispute between a pressure safety relief device manufacturer and an operator of a claim that a device did not operate as designed in a reactor overpressure incident.
Forensic Analysis , Industry Practice/Standard of Care, Operations/Maintenance
Gas Pipeline Rupture Dispute
Performed an independent assessment of the costs incurred, including the lost natural gas inventory, on a ruptured interstate gas transmission line for which the owner requested a multi-million dollar damage reimbursement.  A report was prepared for mediation which resulted in a negotiated settlement.
Industry Practice/Standard of Care, Pipeline, Pricing
Gas Turbine Damage
Assisted in a root-cause analysis and damages dispute concerning a major turbine failure in the start-up of a power plant.  
Industry Practice/Standard of Care, Operations/Maintenance
Hurricane Rita Claim
A petrochemicals facility experienced a loss of steam supply from an outside steam supplier and a subsequent unscheduled shutdown which, in turn, resulted in production losses and major damage to the facility.  The steam supplier attributed the steam outage to boiler damage caused by a hurricane, which had made landfall several months earlier.  Assisted by investigating the link between the hurricane and the steam supplier boiler outages.  
Industry Practice/Standard of Care, Operations/Maintenance
Incident Analysis - Petrochemicals
Performed an investigation analysis following fire and explosion incidents at a major Gulf Coast manufacturing facility.  The engagement entailed development of the sequence of events, root cause analysis, assessment of the decision to rebuild, and reconstruction monitoring.  An independent project schedule and cost estimate for the plant reconstruction was developed.
Business Interruption, EPC-related, Industry Practice/Standard of Care, Operations/Maintenance, OSHA-related, Property Damage, Safety
Insurance Arbitration
Investigated the circumstances surrounding an oil spill at a Gulf Coast refinery following a hurricane.  Work focused on whether the refiner acted as a "prudent operator" before and after the hurricane and whether the owner was entitled to a claim for damages based on an insurance policy's pollution exclusion clause.  Prepared a written report for submission into evidence in an international arbitration.
Arbitration, Industry Practice/Standard of Care, Operations/Maintenance
Insurance Litigation of Refinery Environmental Contamination
Provided expert witness testimony and analysis in the litigation of insurance coverage for previous environmental contamination of petroleum refineries located on the East Coast, West Coast, and Midwest.  Evaluated both liability and damage claims based on the multiple insurance contracts for each site.  
Industry Practice/Standard of Care, Operations/Maintenance
PVC Plant Litigation
Assisted in a dispute concerning allegations that an explosion at a major manufacturer of PVC resins was due to a poor process design that failed to meet government regulations and engineering standards.  Assisted in discovery, inspected the plant, evaluated procedures and work methods, reviewed applicable standards, and reviewed operating records.  
Forensic Analysis , Industry Practice/Standard of Care, Operations/Maintenance
Supply and Distribution
Assisted in a dispute concerning the effects of Hurricanes Katrina and Rita on jet fuel prices for the Gulf Coast market.  The sequence of events and impacts on individual suppliers were developed, as well as an allocation of outages and price differentials attributable to each hurricane.  Our analysis of pricing activity also considered estimates of normalized versus event-based price movements in the overall market.  
Pricing
Subsea Pipeline Rupture
Assisted attorneys in investigating the circumstances surrounding a rupture of a subsea crude oil pipeline caused by a vessel dragging an anchor. This assignment included a review of the impact on crude oil gathering system and receiving terminal operations, the owner's emergency response, subsea pipeline repair costs, and a determination of the maximum insurable loss.
Business Interruption, Offshore, Pipeline, Property Damage, Safety, Waterborne/Marine
Refinery Business Interruption
Prepared detailed analyses of property damage, business interruption, and demurrage claims resulting from a vessel allision with a refinery dock.  
Business Interruption, Property Damage, Waterborne/Marine
Root Cause Analysis
Conducted a Root Cause Failure Analysis on a high pressure steam turbine that failed following a planned outage at a cogeneration power plant. Evaluated outage work procedures, actual outage work undertaken, start-up monitoring results, and post-failure turbine inspection results on turbine disassembly.
Forensic Analysis , Industry Practice/Standard of Care, Operations/Maintenance
Refinery Business Interruption
Determined the economic damages suffered by a refiner as a result of multiple incidents which eventually led to reduced feed to the refinery.  Project required the analysis of all refining units, including their actual and planned operations and maintenance.  Alternative utilizations of feedstock and supply of products were also investigated.
Business Interruption
Polyolefins Plant Explosion
Assisted attorneys and company in preparation for litigation and negotiation with government agencies while investigating the cause of an explosion which caused the death of over 20 people. Assisted risk management in preparing and negotiating property damage and business interruption claims in excess of $1.3 billion.
Business Interruption, Expert Witness/Testimony, Industry Practice/Standard of Care, Operations/Maintenance, OSHA-related, Property Damage, Safety
Polypropylene Manufacturing
Assisted in a dispute concerning insurance claims for property damage and business interruption in connection with a reactor incident during construction of a production facility.  
Business Interruption, EPC-related, Industry Practice/Standard of Care, Property Damage
Refining Market Forecast
Investigated business interruption claims from fuels refineries, lube refineries, cement plants, fuels distributors, and chemicals manufacturers due to the closure of marine access following the release of oil into the waters surrounding the plants.  
Business Interruption
Gas Plant Explosion & Subsequent Insurance Claims
Assisted resolution of claims between insurance company and Owners/Operators related to a gas plant explosion.  Reviewed property damage and business interruption claims for accuracy and veracity.
Business Interruption, Pipeline, Property Damage
Crane Accident Claim Analysis
Analyzed business interruption and property damage insurance claim by a refinery operator resulting from a crane accident. This included analysis of the cost to repair the physical damage from the accident, the impact to schedule and cost of a process unit turnaround that was in progress at the time of the accident, and valuation of lost production due to the accident.
Business Interruption, Operations/Maintenance, Property Damage
Oil Field Pipe Dispute-Insurance Claim
Reviewed a claim involving an insurance dispute relating to proper preservation of drilling pipe in a storage yard following a hurricane.
EPC-related, Industry Practice/Standard of Care
Refinery Explosion, Subrogation of Insurance Claim
Assisted in a dispute concerning a rebuild estimate, which was the subject of subrogation, for an oil refinery process plant damaged by an explosion.  
Property Damage
Review Insurance Claim
Reviewed an insurance claim for refinery "opportunity loss" resulting from a dock closure because of an oil spill.
Business Interruption
Plant Commissioning Review
Provided initial guidance and comments regarding the development of a commissioning and start-up schedule for a polypropylene plant. Provided initial input into how plant start-up incidents affected the commissioning schedule.
Business Interruption, Operations/Maintenance
Gas Compressor Incident Dispute
Provided expert opinions concerning a gas compressor failure insurance claim related to:  (1) evaluating the gas processing facilities' maintenance and standard of care practices compared to industry standards; and (2) reviewing the operating practices and programs utilized at the facility to determine if these practices caused or contributed to the incident and subsequent damage.
Industry Practice/Standard of Care, Operations/Maintenance
Hurricane Damage Insurance Dispute
Assessed the impact of a hurricane to a refinery and its impact on turnarounds being executed at residue upgrading process units.  Support included investigating failures incurred to a flare and to a heater, their relationship to the hurricane, and subsequent shutdowns of process units.  
Operations/Maintenance
Shipyard Insurance Claim Analysis
Assessed a business interruption claim filed by a shipyard that resulted from a third-party incident. Based upon our analysis of the claimant's business operations and performance, claim estimates were developed that formed the basis for settlement negotiations.
Business Interruption, Waterborne/Marine
Refinery Fire Damage Assessment and Rebuild Costs
Assisted in a dispute concerning fire damages and estimated rebuild costs at a petroleum refinery, as well as monitored the rebuild project.  
Property Damage
Gas Plant Fire Damage Repair Costs
Assessed fire-related damages and estimated rebuild cost for a cooling tower at a gas plant.
Property Damage
PET Manufacturer Business Interruption Claim
Assisted in a dispute concerning a petrochemicals business interruption claim and lawsuit after a declaration of force majeure by the manufacturer.  Reviewed pertinent data provided by defendant's counsel and prepared written reports, affidavits, and deposition regarding the claims.  
Business Interruption
Fuel Contamination Investigation
Investigated an occurrence of contaminated diesel fuel at a mine facility, as well as the claimed property damage and business interruption claims.  Assessed the root cause of the fuel contamination and prepared a presentation of our findings.  
Product Quality
Dock Collision Business Interruption Claim
Assisted in a dispute concerning a refinery business interruption claim and lawsuit after a marine vessel allision with a refinery dock.  Analyzed need for extraordinary refined product marine and pipeline movements, as well as trading activity and demurrage claims.  
Commercial Terms Review, Waterborne/Marine
Pipeline Pigging Incident Investigation
Following a plant incident caused by the ingress of water, we investigated upstream pipeline activities and operating records to determine the root cause of the incident.  
Pipeline, Safety
Terminal Hurricane Damage Repair and Claim
Assisted in a dispute concerning a rebuild estimate for a terminal damaged by a hurricane.  
Property Damage
Sulfuric Acid Plant Fire Investigation
Investigated cause for sulfuric acid plant fire. Reviewed plant operating conditions prior to the fire and the unit design to identify the cause and potential contributing causes to the fire and subsequent explosions.
Safety
Refinery Business Interruption - Marine Spill
Conducted an assessment of business interruption damages stemming from downtime caused by an oil spill which disrupted marine traffic at several adjacent manufacturing facilities.  
OSHA-related, Waterborne/Marine
Coker Incident and Design Assessment
Reviewed project management procedures and facilities design of an oil refinery project after a subsequent structural failure.  Provided written report and oral deposition regarding design responsibility and failure liability.  
EPC-related, Operations/Maintenance
Power Transmission Fire Investigation
Investigated the cause of major fire that resulted in a fatality.  
Safety
Heat Exchanger Failure Investigation
Investigated circumstances concerning a heat exchanger failure that resulted in a fire and explosion, fatally injuring several employees. Investigation included evaluating relevant operating records and comparing these with design specifications to evaluate whether exchanger was operated, inspected and maintained in accordance within design parameters and industry practices. Prepared expert report.
Industry Practice/Standard of Care, Operations/Maintenance, Safety
Tank Truck Fatality Incident
Provided inspection of truck tank and tank cleaning facilities related to a fatality accident. Investigation including collecting samples of tanker contents for further testing.
Safety
Undersea Pipeline Damage Repair Costs
Assisted client by providing opinion on reasonableness of claimed repair costs to an undersea pipeline damaged by a ships's anchor.
EPC-related, Offshore, Pipeline, Property Damage
Refinery Business Interruption Assessment
Estimated the lost profit (business interruption claim) stemming from a contractor incident which caused an extended refinery outage.
Business Interruption
Hydrogen Sulfide Incident Investigation
Following a fatality caused by exposure to hydrogen sulfide at a crude oil storage tank with a known sour gas atmosphere, investigated the causes for the incident and the operating and maintenance practices (standard of care) with respect to: supervision, training, and use of personal protective equipment.
Industry Practice/Standard of Care, OSHA-related, Safety
Confined Space Incident and Dispute
Provided support in a wrongful death dispute regarding a confined workspace incident.  The incident involved nitrogen asphyxiation where two maintenance contractors died.  Investigated the cause and origin of the incident, including work procedures and practices. 
Operations/Maintenance, OSHA-related, Safety
Contractor Tripping Incident
Investigated circumstances concerning the personal injury of a contract employee. Provided opinions regarding general safety requirements, industry practices, contractor training and safety expertise and utilizing contractors for the activity being performed.
Operations/Maintenance, OSHA-related, Safety
Storage Tank Spill Incident
Developed an expert witness report associated with a spill from a sour naphtha storage tank.  Reviewed numerous documents and depositions to develop opinions associated with the event.  Provided expert opinions on the standards of care and operation of a petroleum refinery. 
Environmental, OSHA-related, Safety
Valve Failure Investigation: Herbicide Plant
Investigated the design and operations of a batch reactor process for the manufacture of herbicides in relation to a piping failure.  Equipment material of construction was the focus of the analysis.  
Chemical Plant Fire Repair
Provided technical advice and consultation for recommended repair procedures for vessels and piping damaged in a chemical plant fire. 
EPC-related, Physical Asset Appraisal
Fall-Related Injury Investigation
Investigated circumstances concerning the personal injury of a contract employee who fell inside a flue gas system during a refinery turnaround.  The investigation included evaluation of:  (1) refinery safe work practices compared to industry standards; (2) utilization of fall arrest systems to mitigate the presence of fall hazards; (3) the responsibilities of both operating companies and contractors to recognize and develop plans to mitigate fall hazards; and (4) responsibilities of both parties to execute and communicate turnaround work plans.
Industry Practice/Standard of Care, OSHA-related, Safety
Stainless Steel Braided Hose Failure
Provided technical expert witness assistance in dispute concerning the failure of a braided stainless steel hose in a medical facility.
Storage Tank Foundation Failure
Following the failure of a storage tank foundation, we reviewed the applicable documentation and prepared an affidavit concerning the standard of care used during its construction.  
Debutanizer Tower, H2S Incident
Developed an expert witness report associated with an incident concerning an H2S release during the scheduled turnaround activities involving a debutanizer tower. 
Refinery Economic Losses Due to Fire
Prepared an assessment to quantify the economic damages resulting from a refinery fire that caused damage to equipment and a lengthy shutdown of a refinery distillation and conversion train.  Prepared a detailed report that documented both business interruption losses and repair costs for damaged equipment.  Provided testimony in deposition and district bench trial.
Business Interruption, Commercial Terms Review, Expert Witness/Testimony, Pricing, Property Damage
Ethanol Plant Business Interruption Dispute
Reviewed an insurance claim for an ethanol plant "opportunity loss" due to a power outage resulting from repair work on main electrical feed cables after being damaged by a construction contractor. Reviewed operating expenses and ethanol pricing during the subject period and provided an opinion on the reasonableness of the size of the claim.
Business Interruption, Pricing
Marine Dock Business Interruption Claim
Reviewed documents and provided analysis concerning a marine collision with the crude oil unloading dock, which resulted in a business interruption claim for a Gulf Coast refiner.
Business Interruption, Waterborne/Marine
Refinery Business Interruption Claim
On behalf of an insurer, calculated the business interruption expense for a Gulf Coast refinery associated with a delay in receiving crude oil via ship.  Reviewed calculations provided by the refinery and opined on associated business interruption impacts associated with the delay in receiving crude oil shipments.  Provided an expert report, which enabled a settlement in the dispute.
Business Interruption, Waterborne/Marine
Refinery Business Interruption Claim
Provided technical support for a business interruption claim associated with a refinery fire.  Evaluated refinery linear program model used to develop the "but for" cases.  Prepared a report with recommended corrections to the linear program model "but for" case output.
Business Interruption, LP/Planning Practice
Business Interruption Claim Analysis
Reviewed preliminary business interruption calculations related to a ship collision incident at a refinery dock.  Developed a revised business interruption estimate, which resulted in a claim settlement.
Property Damage, Waterborne/Marine
IPP/Refinery Power Generation Outage Dispute
Assessed the cause(s) of supplier's steam and electricity generation failure and mitigating actions by the refinery/petrochemical customer. Preliminary findings and a document request were provided to the client.
Arbitration, Business Interruption, Expert Witness/Testimony, Industry Practice/Standard of Care, Operations/Maintenance, Property Damage
Refinery Construction Dispute
Assist client and provide expert consulting support assessing responsibilities of an EPC contractor, as well as project execution and start-up issues associated with the construction and start-up of a grassroots refinery. 
Arbitration, Business Interruption, EPC-related, Industry Practice/Standard of Care, Operations/Maintenance, Property Damage
Accident Liability
Assisted in a personal injury claim following an incident in a petroleum refinery process unit.  Examined refinery conformity with the latest available industry technology, regulations, standards, and practices.  
Industry Practice/Standard of Care, OSHA-related, Safety