At a glance
A client with a $1 million wine collection reported a potential loss, only to have the insurer prepare a prompt denial of the $400,000 claim. Concerned that the decision lacked proper support, our timely intervention and ongoing involvement ultimately helped overturn the denial and secure a full settlement, avoiding the need for legal escalation.
The challenge
Our client owned an impressive wine collection, valued close to $1 million. While away on vacation, a critical compressor failure caused the cellar's temperature to rise to 70°F+. Although the client purchased specialty wine insurance coverage for $400,000, upon submission, the insurer’s general claims adjuster hastily denied the claim. The adjuster asserted that the temperature fluctuation had no impact on the wine. This conclusion was premature; it lacked substantive proof and didn't reflect the nuances of wine preservation. Given the complexity of assessing the potential damage, we believed the situation required specialized expertise.
Our approach
Instead of accepting the insurer’s unsupported determination, we stepped in before the denial was communicated to the client. Our conviction was clear: only a qualified expert could credibly assess whether the wine had been compromised. After extensive research to identify the “right” professional, we secured the insurer’s agreement to retain a master sommelier to conduct a formal, independent evaluation. The sommelier performed a multi-layered inspection:
- Wine needle sampling: Extracting wine through the cork using specialized needles that preserve the seal. The cork naturally reseals, and argon gas replaces oxygen to prevent spoilage.
- Visual inspection: Checking for seepage around corks, unusual sediment, or other signs of compromise.
- Oxygen sensor testing: Measuring dissolved oxygen levels to identify exposure or degradation.
- Randomized tasting: Evaluating small samples for off flavours across various vintages and varietals for a representative analysis.
The results confirmed that several bottles were spoiled to varying degrees of impact, depending on age and type of vintage.
The outcome
- Full acceptance and cost coverage: The insurer agreed to cover the sommelier's fee and accepted the findings
- The client had the option to retain the wine, rather than surrender it as salvage.
- Maximum payout secured: The insurer paid the full policy limit of $400,000.
- Legal escalation was avoided, saving the client significant time, expense and stress.
Why it matters
Many brokers step back once a claim is reported to the insurance company. We take a different approach. We remain involved, advocate for our clients and help them navigate complex situations. In this case, our foresight, persistence and attention to detail resulted in the client being fairly and rightfully compensated. This case demonstrates the value of having a broker who remains engaged, asks the right questions and challenges decisions when necessary.
