1. Determining liability for insurance claims

Evidence that a fire was deliberately started by the owner of a business might form the basis of a denial of liability by an insurer. Fire investigation can also assist the determination of liability in industrial losses. There may be fire insurance but no machinery breakdown cover, and uncertainty whether the damage is a result of fire or some other cause.

 2. Examining the possibilities for subrogation

Many fires are accidently started by contractors, often involving the use of a hot work process such as welding or oxy-acetylene cutting. While it is easy to be suspicious, proving a connection between such work and a disasterous fire involves methodical interviewing, detailed examination of the fire site, and considerable practical knowledge of various hot working processes.

 3. Preventing further fires

One obvious way to prevent fires is to learn from the mistakes of the past. In the respect, an important feature of fires in manufacturing facilities is the manner in which the fire spreads from area to area. Once the reasons are understood, it is possible to make building modifications and alterations to material storage which will minimize the loss from a future fire. It is surprising now rarely this approach is taken, and in a number of instances, within a time at the same factory, where there has been no attempt at building modification.

 4. Establishing the extent of fire damage

Stock which is not burnt or even obviously heat affected can still be involved in an insurance claim. The goods might be in the business involved in the fire, or the neighbouring premises. Damage can be alleged to have occurred as a result of heat, smoke, acidity, odour, water or even humidity.

 5. Quantification of stock

A very destructive fire can destroy almost all remains of stock. When this is accompanied by an absence of other ways in which an adjuster can verify the claim, the loss adjuster is asked to determine the likely quantify of goods present at the time of the fire. They have a variety of methods which can compliment each other. The results are sometimes ballpark, and at other times can only be expressed as a maximum. However this is usually sufficient in cases where it is suspected the goods have been overstated by an order of magnitude.

 Source : Forensic Services (M) Sdn Bhd – Malaysia

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