Energy & Mining

Complex BI Claims Resolution in the Worldwide Energy and Mining Sector

Energy and mining industries come with their own unique set of legal, environmental, health, and safety challenges. Operations are susceptible to all kinds of risks such as equipment failures, natural disasters, third-party negligence, civil unrest, fires, explosions, and other operational hazards.

Crude oil and gas are vital to many industries and account for a large percentage of the world’s energy consumption. The integrated operations of their extraction, refining, and downstream petrochemical processing represent the world’s largest industry.

Lowers Forensics provides support services and education to insurance professionals being asked to manage a noticeable increase in complex business interruption claims to rise in the Energy and Mining sector. We deliver expertise across the energy value chain and are internationally recognized for work across a broad range of issues, including insurance claims accounting, international investigations, litigation and disputes, intelligence and security, and anti-fraud.

With the expertise of our people at the forefront, we apply leading-edge technology to deliver precise insight and value to the clients we serve.

Unearthing Hot Topics in Mining BI Claims

On Demand Session
Hosted by: Joe Scarlato
CSO, Lowers Forensics International

Service Areas

Past Performance

Wind Farm/Turbine US – Wyoming, Texas, California

Calculated loss for unit and entire farm that experienced months-long outage. Calculations considered units in farm, PPA agreement contracts, production tax credit and limits of water tables.

Renewable Energy - Costa Rica

Reconstructed the entire grid minute by minute to determine increase in cost due to having hydroelectric units down. Grids will send out most efficient units to generate – when hydroelectric units go down, everything moves up in the dispatch order which is an additional cost to the grid for having lost their hydroelectric units.

Renewable Energy Pre-Risk - Island of Hawaii

Consulted with algae biofuels company on BI insurance coverage and limits.

Renewable Energy - Puerto Rico

Reconstructed entire power grid.

Diamond Mine - Canada

Loss involved a mine that ice road truckers bring supplies to. Temperature increase flooded the mine causing erosion. Due to calculations and analysis, a $58M claim was retracted by insured due to discovery of fraud by CFO.

Diamonds Fraud Scheme - Belgium

Fraud scheme involved manipulation of P&L statement. Lowers was brought in to calculate the impact of the fraud scheme and assess its value because commission was being paid to sales people based on calculation provided.

Refinery - South Africa

Lowers performed financial impact and BI assessment for operations.

Large Complex Refinery - Spain

Performed financial analysis of mitigation including a unit by unit utilization recreation resulting from crib distillation outage.

Featured Case Study

When Lightning Strikes: The Ensuing Loss of Power & Profits

The Lowers Forensics team was presented with a business interruption claim submitted on the basis of increased variable costs of production stemming from a lightning strike which damaged an integral steam turbine for 153 days and impacted the profitability of several gas turbines. See how we handled the claim.

The Lowers Energy & Mining Team

Joe Scarlato, CFE
Chief Strategy Officer
(833) 456-9377
Danielle Gardiner, CPA, CFF
Senior Vice President
(401) 210-7079
Carlos Rivera
Senior Vice President - Caribbean & Latin America
(551) 280-9709
Monika Perez
Senior Vice President
(786) 688-2590
John Andrew
Senior Vice President, United Kingdom & European Operations
+44 (0) 20 3917 3790

Our Insights

Leveraging AI for Efficient Processing and Classification of Financial Data in Insurance Claims

This blog explores the benefits of leveraging AI in financial data processing, highlighting how it enhances efficiency and expedites the lifecycle of insurance claims.

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Navigating Business Interruption and Extra-Expense Claims When Inflation, Workforce Shortages, and Supply-Chain Issues are High

At the recent PLRB Regional Conference series in Rhode Island, Lowers Forensic International SVP Danielle Gardiner co-presented “Not Your Typical Business Interruption,” a continuing education session for adjusters that provided real-world examples of how to navigate these unique and challenging times.

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Business Interruption Claims & Implications for Loss Calculations

Between the COVID-19 pandemic, recent social unrest, supply chain interruptions and now the workforce shortage, there have been some very interesting issues thrown into the claims process. Labor shortages are expected to impact the economy and, as a result, the claims process well into 2022 and possibly beyond. Knowing how to deal with it and how to account for its impact on the claims process is critical to weathering this storm.

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