MDD was retained to quantify the losses sustained after the majority of a herd of cows perished in a barn fire.
To assess the lost profits, MDD analyzed the insured’s quota and current milk prices to determine the revenue the farm would have made and also factored in the extra expenses the insured incurred by paying a large portion of his milk check to the farms that were caring for and milking the surviving cows.
MDD’s calculations also took into consideration saved expenses such as not having to feed and care for the cows that had perished. The farmer also opted to expand his facility after the incident and was able to buy additional quota and earn revenue in this fashion, which helped to mitigate the loss. MDD issued a preliminary report and also provided monthly reports to the insurer based on documentation that continues to come in about the farm.