Having adequate commercial property insurance is crucial for any business that owns or rents the real estate they occupy. While business owners hope they’ll never need to file an insurance claim, unexpected disasters both big and small can happen at any time. Reviewing case studies and real-world examples of commercial property insurance claims can help demonstrate the importance of proper coverage.

Below we will look at several case study examples of actual commercial real estate insurance claims. The identities have been changed, but these stories illustrate the types of losses and claims businesses can potentially face. We’ll also answer key questions related to commercial property insurance and case study research to provide broader context around this important topic.

Case Studies: Real-Life Examples of Commercial Real Estate Insurance Claims

What is a Real-Life Example of a Case Study?

A case study examines a real-life situation, event, or problem for a person, group, or organization. Case studies are in-depth investigations of a particular instance used to gain deeper insight or understanding.

For example, a business case study could analyze how a company handled a specific challenge or situation. Researchers gather extensive details and information around the case to thoroughly understand the how and why behind what happened.

Case studies allow other businesses to learn from real examples. A case study on an insurance claim provides a detailed look at the circumstances and outcomes for that policyholder. Other companies can better evaluate their own risks and insurance needs by studying case studies around claims.

Commercial Property Insurance Claim Example #1: Fire Damage to Factory

Overview: A small factory that produces auto parts experienced a devastating fire that destroyed most of the 10,000-square-foot building. The fire began after hours and was caused by an electrical issue. Flames engulfed the structure within minutes. The fire destroyed the inventory, and equipment, and damaged much of the facility.

Claims Process: The business owner immediately contacted their insurance company after the fire department extinguished the blaze. An adjuster was assigned to assess the damage and help process claims under the company’s commercial property insurance policy. The policy included business personal property coverage, equipment breakdown protection, and business income loss coverage.

After a thorough review, the insurance provider paid out significant claim amounts:

Over $100,000 for destroyed inventory and equipment
$250,000 for repairs to the damaged building
$50,000 for income lost while closed for repairs

Case Study Takeaways: This example demonstrates the importance of adequate commercial property insurance limits. Even a small facility houses valuable equipment and inventory. Property risks like fires can quickly destroy everything. Sufficient coverage provided crucial financial recovery after a devastating loss.

What is an Example of a Claim on Insurance?

Some examples of common claims filed under commercial property insurance policies include:

Fire damage – Getting compensation for repairs after a fire destroys part of the building.
Vandalism – Getting reimbursed for broken windows, spray-painted walls, or other vandalism by trespassers.
Burglary – Receiving payment to replace stolen office equipment, electronics, inventory, or other items after a break-in.
Equipment breakdown – Getting funds to repair or replace broken HVAC systems, generators, or critical business equipment that fails.
Roof leak – Getting the roof fixed and interior water damage repaired after a storm.
Food spoilage – Having refrigerated items replaced after an equipment failure or power outage.
Natural disasters – Accessing funds to rebuild and recover after major damage from a hurricane, tornado, or flood.

An insurance claim seeks compensation for these types of property losses and the resulting business disruption and expenses. The specifics of each claim depend on the individual circumstances and policy coverage.

What is an Example of Claims Made Basis Insurance?

Claims made basis of insurance policies only cover claims that are made while the policy is active. This is different from “occurrence basis” policies that cover issues stemming from an incident that occurred while covered, even if the claim arises later.

For example, a claims-made basis policy would handle a slip-and-fall accident only if the injured person files the claim during the active policy period when it happened. If they didn’t file the claim until months later, it would not be covered under a claims-made basis policy.

Many professional liability insurance policies are written on a claims-made basis. For instance, a lawyer’s malpractice policy would handle a claim filed now over an incident that happened yesterday. But it wouldn’t cover a claim filed next year over that same incident after the policy ends.

With claims-made policies, it’s critical to maintain continuous coverage. Purchasing “tail coverage” can extend the window to file claims after a claims-made policy ends.

Commercial Property Insurance Claim Example #2: Hurricane

Overview: A landscaping business with two greenhouse office/warehouse buildings suffered extensive damage when a Category 4 hurricane tore through the region. Both structures sustained major harm.

The 5,000-square-foot metal warehouse had deep roof buckling and collapsed walls on three sides. The damaged greenhouse had hundreds of shattered glass panes, destroyed tanks and irrigation equipment, and dying plants oozing onto the flooded floor.

Claims Process: The business owner promptly contacted their independent insurance agent after the storm cleared. The agent helped them file a claim with photos documenting all the damage. An insurance adjuster inspected both properties and wrote up loss reports.

Given the total destruction, the insurer declared both greenhouses to be total losses. The landscaping company had the following approved claims:

$300,000 – Total value payment on destroyed warehouse
$200,000 – Total value payment on demolished greenhouse
$50,000 – Coverage for damaged and dead plants
$30,000 – Payment for lost income during three months of repairs and rebuilding

Case Study Takeaways: Major hurricanes and storms pose huge risks for local businesses. However adequate commercial property insurance provided crucial financial assistance so this small landscaping company could completely rebuild. The owner was glad he paid extra for special riders to cover greenhouse equipment and plant inventory.

How do you Write a Case Study Example?

Writing an effective case study example involves several key steps:

1. Identify the case – Choose a relevant, interesting real-world example to spotlight. For an insurance claim, pick a unique loss event.

2. Research details – Gather extensive background information about the case through documents, interviews, reports, etc.

3. Write a summary – Concisely summarize the situation and main issues involved in an intro overview section.

4. Describe events – Use storytelling techniques to recreate what happened in a logical, engaging sequence.

5. Analyze information – Provide deeper insights, commentary, and analysis around core issues and outcomes.

6. Share lessons – Discuss takeaways, learnings, and conclusions from the case study example.

7. Format visually – Use section headings, lists, images, or charts to make the case study more scannable and visually organized.

What is a Simple Example of Case Study Research?

A simple example would be a two or three-page case study focusing on a specific situation at a local small business. For instance, researching how the owners responded when a water pipe burst overnight and flooded their retail store.

The case study would provide a brief overview of key details – when it occurred, damage caused, insurance coverage, etc. It would recreate the incident with quotes from the owners describing arriving to see the water damage. It would analyze how the business filed an insurance claim, negotiated the settlement, and used funds to recover. Finally, it would share takeaways from this localized situation.

Even a simple case study like this contains in-depth descriptions, analysis, and learnings around the specific circumstances of the case. The focused snapshot illustrates a broader issue or scenario through that real example.

Commercial Property Insurance Claim Example #3: Water Leak Damage

Overview: An Italian restaurant leased a historic brick building downtown as their restaurant location. One morning, the manager arrived to find an entire section of the dining room soaked with several inches of standing water.

A server who opened noticed water dripping from the ceiling tiles. Further investigation revealed a damaged roof drain pipe had leaked overnight, sending water down interior walls and collecting on the hardwood floor. The water is also wicked into benches and damaged decor.

Claims Process: The restaurant manager took pictures immediately and contacted the building owner since it was a leased space. The owner had commercial property insurance covering building damages. He filed a claim to get the roof drain repaired and the water-logged dining room restored.

The insurer paid out:

$25,000 to replace damaged wood flooring
$15,000 for roof repairs
$10,000 for dining room repairs including drywall replacement

The restaurant had business interruption insurance that paid $5,000 to cover lost income while closed for repairs.

Case Study Takeaways: Even in a leased building, restaurants have valuable furnishings that can be damaged. Tenants should consider business personal property coverage. And business interruption coverage helps offset income dips when forced to close temporarily for repairs.

What are the 4 Parts of a Case Study?

A strong case study generally includes four key sections:

1. Introduction – Brief background on the person, company, or situation being spotlighted. Overview of the key issues involved.

2. Background – Relevant context around how the circumstances arose. Additional details to establish the setting.

3. Main Analysis – In-depth exploration and analysis of the central case details, events, outcomes, and effects.

4. Conclusions – Summarize lessons learned, takeaways, recommendations, and closing thoughts.

These four sections allow the case study author to logically build an understanding of both what happened and why it matters to readers. The analysis is sandwiched between contextual setup and final insights.

What are the 5 Components of a Case Study?

Case studies generally contain these five core components:

1. Overview – The intro section outlining the topic, situation, and relevant background.

2. Key Details – Factual information around when, where, who, what, and how.

3. Chronology – A timeline sequencing key events and pivotal moments.

4. Analysis – Deeper interpretation and examination of main effects and issues.

5. Conclusions – Final takeaways, lessons learned, and meaning derived.

These five components help structure case studies in an engaging yet informative way for readers. The chronological facts and narrative recreate what happened. The analysis provides perspective around the implications.

Commercial Property Insurance Claim Example #4: Frozen Pipe Burst

Overview: In the heart of winter, an overnight freeze caused a copper pipe in the upstairs office of an accounting firm to rupture. By morning, water had been gushing out of the wall for hours. The flooded water poured down to lower floors, causing damage to drywall, carpets, furniture, and computer equipment.

Claims Process: The accounting firm quickly had water and power shut off to minimize additional flooding. As soon as possible, they filed an insurance claim reporting the incident and water damage.

The insurer sent an adjuster and restoration crew to start repairs. Based on the adjuster’s inspection, the following claims payments were approved:

$50,000 for water damage repairs throughout the office.
$25,000 for the replacement of computer equipment and electronics.
$10,000 for rental of temporary office space during repairs.

Case Study Takeaways: Frozen and burst pipes cause immense water damage if not caught quickly. Having sufficient coverage for property damage and lost income ensured this business could get back on track after the incident.

What are the 3 Methods of Case Study?

There are three main types of case study research methods:

1. Illustrative – These offer a descriptive, in-depth look at a particular real instance. They focus on telling the story around a specific case.

2. Exploratory – These cautiously draw some broader analysis from examining a case. The case is a springboard for insights into the larger issue.

3. Cumulative – These use a compilation of individual case studies to drive more generalizable conclusions about the topic.

The illustrative method involves the least amount of wider analysis beyond just the case details. The exploratory and cumulative approaches use the case to fuel a wider analysis of patterns, effects, and conclusions.

What are the 6 Types of Case Study?

Several types of case study formats exist:

1. Descriptive – These provide a factual account of the case details without much commentary.

2. Explanatory – These go in-depth to explain the reasons and logic behind the case.

3. Exploratory – These investigate the situation with a questioning approach.

4. Illustrative – These offer select examples that symbolize broader points.

5. Critical instance – These examine a case representing a wider phenomenon.

6. Cumulative – These aggregate information from various cases in one study.

The descriptive and explanatory types aim to recreate the particular circumstance. The other four types leverage the specific case to represent something more general.

What is an example of a Multi Case Study?

A multi-case study includes separate examinations of more than one case and then compares them. For example, a multi-case study could profile three different companies that all faced embezzlement by an employee.

The study would lay out the background, chronology, and effects of each company’s specific situation. Then it would compare and contrast how leadership handled the crisis, the types of losses incurred, how insurance claims were filed, and the aftermath across the three cases.

Analyzing multiple cases can help identify common themes, variances, and lessons learned. A multi-case study allows more sweeping conclusions than focusing on just one instance.

Commercial Property Insurance Claim Example #5: Collapsed Ceiling

Overview: A 40-year-old supermarket underwent major plumbing repairs to replace aging lead pipes throughout the building. During the work, the bathroom above the dairy section began leaking one day. At first small drips came through the ceiling tiles. By the end of the day, the entire ceiling collapsed under the weight of accumulated water.

Yogurt, cheese, and other debris rained down into the dairy aisle. The collapse also took down refrigeration lines and damaged the wiring. Milk, creams, and other perishable items quickly began spoiling at room temperature.

Claims Process: The store manager rushed to get the dairy products disposed of safely and to shut off affected refrigeration units before more food spoiled. He photographed all the damage. The supermarket filed an insurance claim for the ceiling repairs, lost refrigerated stock, and sales impacts while dairy was unavailable.

The insurer provided the following payouts:

$75,000 for ceiling demolition and rebuilding
$35,000 for new refrigeration line installation
$15,000 reimbursement for discarded dairy products
$10,000 for lost income while repairs were made

Case Study Takeaways: Construction projects in commercial spaces come with liability risks if problems arise. Having adequate coverage ensured this major plumbing repair mistake didn’t put the supermarket owners in a financial crisis.

How do you Solve a Case Study?

Solving a case study involves a process like:

Step 1) Thoroughly read and review all provided information about the situation. Take notes.

Step 2) Analyze the central issues, complications, stakeholders, and timeline based on the details.

Step 3) Weigh potential solutions or approaches to address the core problem or opportunity areas.

Step 4) Determine the best solutions using available data, logical thinking, and research as needed.

Step 5) Develop a recommended plan of action with specifics about how to implement the chosen solutions.

Step 6) Communicate suggested strategy and steps through a written summary, presentation, or drafted proposal.

The goal is to use all available information to make data-driven, logical recommendations for how to resolve or capitalize on the business situation. A well-constructed solution accounts for multiple angles.

What is a Business Case Study?

A business case study examines an issue, challenge, or scenario faced by a company or organization to draw broader conclusions and recommendations. For example, a business case study could analyze how a manufacturing firm addressed employee retention issues stemming from low engagement.

Business case studies aim to tell the detailed story of how a company navigated a problem or situation. They highlight influential factors, decisions made, actions taken, results achieved, and lessons that can benefit other organizations. The narrative around a single company’s experience allows for deeper insights into similar issues.

How do you Write a Business Case Study Example?

To write an effective business case study example:

1. Identify a specific company situation – For instance, how a tech firm overcame losing its top salesperson.

2. Research details – Learn about the company, industry, timeline, and factors involved through interviews and documents.

3. Outline sequence of events – Organize background context and how the situation progressed.

4. Highlight key decisions – Call out turning points, strategic choices, and obstacles addressed.

5. Analyze outcomes – Explore results of actions taken, with graphics if helpful.

6. Derive insights – Summarize learnings and recommendations for other companies.

7. Format clearly – Use section headers, lists, and images to enhance readability.

The storytelling brings the company’s experience to life while analysis digs into the pivotal elements that made a difference. An appendix with supporting documents can augment the text.

Commercial Property Insurance Claim Example #6: Storm Damage

Overview: A strong thunderstorm with 70 mph winds pummeled a local retail plaza one evening. A large tree near the parking lot got uprooted and came crashing down directly on top of the adjacent florist shop. The massive tree caved in the roof and front wall, destroying shelves, coolers, and most inventory.

Claims Process: The owners immediately contacted emergency services and their insurance provider after the incident. The insurer sent an adjuster and engineer to inspect the premises and assess the damage. Given the tree trunk resting inside the demolished shop, the building was declared unsafe to occupy.

The insurance company provided extensive compensation:

$250,000 for repairs to completely rebuild the collapsed sections
$100,000 to replace destroyed shelving, coolers, and furniture
$75,000 for discarded soiled inventory and flowers
$50,000 for income loss during the 2 months the shop was closed
$25,000 for marketing efforts to attract customers back once reopened

Case Study Takeaways: Severe weather can wreak havoc on local businesses. Adequate insurance provided the financial means for this company to rebuild from the ground up after a catastrophic storm damage event. The owners were grateful they paid extra for business interruption coverage.

How do you Write a Case Study for a Business Problem?

Here is an effective process for writing a case study focused on a business problem:

1. Identify the core issue – For example, manufacturing delays causing customer dissatisfaction.

2. Outline the situation – What factors, decisions, and events led to this problem arising?

3. Spotlight symptoms – Quantify results like falling sales figures and customer complaints.

4. Document effects – How has the problem impacted day-to-day operations and the bottom line?

5. Catalogue attempted solutions – Note what efforts have been made already to address the issue.

6. Explain outcomes – Analyze why attempted solutions so far have fallen short.

7. Derive insights – What alternative strategies might improve the situation?

8. Add recommendations – Provide ideas to prevent or handle issues better going forward.

Focusing a case study on a core business problem allows for the exploration of causes, effects, attempted solutions, and remaining knowledge gaps. The analysis aims to inform improved strategies.

Where to Read Case Studies?

Many places offer insightful case studies across industries and topics:

Business school resources – Harvard, Stanford, MIT, and other leading institutions offer robust case study libraries.
Company websites – Businesses like HubSpot and Mailchimp publish customer case studies.
Industry publications – Trade magazines often feature case studies relevant to their audience.
Consulting firms – McKinsey, Bain, and others share case studies on business strategy.
Research journals – Academic journals like HBR have peer-reviewed case studies.
Government agencies – Agencies study specific industries like healthcare and education.
Nonprofits/NGOs – Foundations often fund or conduct social program case studies.

The most relevant case studies come directly from authoritative sources with access to companies, data, and real scenarios. Case studies produced as educational resources can provide especially detailed analysis.

Which is the Best Case Study?

Some characteristics of an excellent case study:

Focused – Spotlights a specific situation at an identified organization.
Story-driven – Uses engaging narrative to recreate what happened.
Data-rich – Contains ample details and statistics to spur analysis.
Balanced perspectives – Includes viewpoints from different stakeholders.
Transparent methodology – Explains how information was gathered and analyzed.
Visual elements – Has graphs, images, and charts to enhance understanding.
Strategic recommendations – Provide ideas to address issues or leverage opportunities.
Concise and scannable – Written and formatted clearly for easy absorption.

The best case studies strike a balance between crafting an interesting story and providing data-driven perspectives around a real scenario.

How to Learn from Business Case Studies?

Some tips for learning from business case studies:

Take notes on background details as you read case studies to reinforce key information.
Pay attention to pivotal turning points and decision moments in the story.
Connect trends and patterns you notice across different case studies.
Discuss case studies with colleagues to gain other insights.
Consider how key takeaways could apply to your organization.
Think critically about the effects of certain strategies.
Research terms or methodologies referenced that are unfamiliar.
Test your understanding by imagining alternative scenarios.
Apply strategic frameworks like SWOT analysis to examine factors at play.

Absorbing lessons from case studies takes reflection, critical thinking, and relating the examples to your own experiences.

How do I Start Studying Case Studies?

To start learning from case studies:

Pick focused topics – Select case studies around an issue your organization is facing.
Read actively – Outline key details. Highlight effective strategies.
Compare and contrast – Note themes and differences across case studies.
Discuss implications – Debate case insights with team members.
List takeaways – Record specific, actionable lessons learned.
Relate to your business – Identify how insights apply to your circumstances.
Implement ideas – Incorporate applicable recommendations into your plans.
Measure results – Track outcomes from implementing case study findings.

Studying case studies is most effective when applied directly to solving current challenges and capitalizing on opportunities.

What Makes a Good Case Study?

Characteristics of quality case studies include:

Realism – Provides accurate portraits of actual events.
Relevance – Focuses on issues useful for intended audiences.
Rigor – Uses robust research and analytical methods.
Novel perspective – Offers new insights or angles on situations.
Attention to detail – Contains sufficient context and specifics.
Logical flow – Organizes information in a coherent narrative.
Multimedia elements – Integrates data visualizations, images, and videos as aids.
Transparency – Discloses methodology and author biases openly.
Brevity – Is concise, focused, and avoids extraneous details.

The most compelling case studies balance accuracy, analysis, creativity, brevity, and value for those looking to learn from the examples provided.

How Long Should a Case Study Be?

Case study length can vary quite a bit depending on the purpose and level of detail needed. Some typical guidelines on case study length:

Executive case study brief: 2-4 pages
Customer case study for marketing: 4-8 pages
In-depth business teaching case: 20-40 pages
Journal article presenting a case study: 10-15 pages
Dissertation case study chapter: 40-80 pages
Case study section of consulting report: 10-15 pages

Complex or technical topics may warrant more extensive case studies. Other situations call for very concise case summaries. The key is to focus the case study around the most pivotal details and takeaways for the target reader. Extraneous facts should be cut.

What Questions Should I Ask for a Case Study?

Key questions to ask when creating a case study include:

What was the background context leading up to this situation?
Who were the main people or stakeholders involved and what were their roles?
What key events, milestones, or decisions marked the timeline and why?
How did challenges or opportunities arise and how were they addressed?
What results, consequences, and outcomes occurred along the way?
What metrics and quantitative data are available to showcase impacts?
What documentation or evidence can support findings?
What broader insights, lessons, or new knowledge came from this case?
What could have been done differently or what should happen next?

The right questions will allow you to reconstruct the case narrative, analyze implications, and derive recommendations. Seeking supporting data and input from various perspectives enriches the case study.

Conclusion

As these real-world examples demonstrate, commercial property risks can create significant, even catastrophic losses for businesses without warning. However, adequate insurance coverage helps companies rebuild, recover, and move forward. Analyzing case studies provides important perspectives for business leaders as they evaluate risks facing their organization and ensure proper protection is in place.