Electrical and Product Fires

Step-by-step checklist

Identify

• Contact the claim adjuster right away. Ask them to hold the scene and for permission to retain an expert at the client's expense. Note the call in the file.
• On every claim, ask the client whether they want an origin and cause investigator to review the scene, or confirm one is already assigned. Note their answer in the file so the decision is on record.
• Make sure no evidence is touched or moved until the expert has secured the scene
• Get the client's approval for the scene exam cost. Most run at least $1,600 with travel, the day rate, and expenses.
• Get the fire department report and retain an origin and cause investigator
• Find the area of origin, and the product or wiring in it
• Photograph the rating plate, and identify the maker, seller, importer, or electrician

Hands off until the expert arrives. Nothing at the scene gets touched, moved, repaired, or thrown out until the origin and cause investigator has secured it. Evidence that's moved early can sink the whole recovery.

Notify

• Notify every possible party before the scene is touched
• Send joint scene exam invitations

Investigate

• Hold the joint scene exam, including arc mapping
• Collect the product, outlet, and wiring under chain of custody
• Buy an exemplar product if you can
• Search the CPSC recall list and SaferProducts.gov
• Hold a joint lab exam with an agreed protocol, then review the report

Demand

• Review payments and out-of-pocket costs
• Sort the supports into photos, estimates, invoices, and reports
• Send the full demand packet

Negotiate

• Follow up, and use a tolling agreement if the lab work runs long
• If liability is accepted, negotiate. If not, review for ADR.

Settle

• Review the release
• Receive payment, issue the deductible and client payments
• Final file review, then close

1. Identify

Common sources

• Building wiring, outlets, switches, panels, and light fixtures
• Appliances like dryers, dishwashers, refrigerators, microwaves, and coffee makers
• Lithium-ion batteries in e-bikes, scooters, power tools, and phones
• Space heaters
• Extension cords and power strips
• HVAC electrical components (see the HVAC guide)

Defect, installation, maintenance, or misuse?

Identify the manufacturer

• The rating plate or label often survives on the back or bottom of an appliance, even after a fire. Have the investigator photograph it in place.
• Ask the insured for purchase receipts, online order history, registration cards, and old photos showing the product.
• For internal failures, the expert can often identify the maker of the failed component, like the control board or the battery cell, which may be a separate company.
• For online purchases, the seller or importer may be the only party reachable in the US. Record the seller name from the order.

2. Notify and investigate

Put everyone on notice before the scene is touched. Product fire claims are lost to spoliation more than any other kind. A court may penalize your side if your expert removes or tests the product without giving the manufacturer a chance to attend.

Who to put on notice

• The product manufacturer, and any component maker the expert identifies
• The seller, retailer, or importer
• The installer or electrician, for wiring or installed appliances
• Each party's carrier, once known

How the investigation works

• Origin first. The investigator finds the area where the fire started. A product can only be the cause if it was in that area.
• Arc mapping. Tracing where electrical arcing happened on the wiring helps pinpoint the origin and which circuit or device was involved.
• Joint scene exam to document and collect the product and wiring, then a joint lab exam for any disassembly or destructive testing.
• Exemplars. An identical, undamaged product helps the experts compare. Buy one if possible.
• Recalls and prior incidents. Search the CPSC recall list and SaferProducts.gov for the brand and model. A recall or similar reports can strengthen a defect claim.

Evidence checklist

• Fire department report and the origin and cause report
• Scene photos before debris removal, including the product's rating plate
• The product, the outlet or circuit it was plugged into, and the related wiring, under chain of custody
• Purchase records, order history, and registration
• Electrical permits and invoices for any recent work
• Recall and incident search results
• Witness statements about how the product was used and whether it was charging or running

3. Demand, negotiate, and settle

Liability theories

• Against the manufacturer, component maker, seller, or importer: manufacturing defect, design defect, failure to warn, and breach of warranty
• Against the electrician or installer: negligent workmanship and code violations

Defenses to expect

Negotiating and settling

• Manufacturers often use national counsel or a third-party administrator. Expect a detailed lab protocol before any testing, and expect it to take time.
• When the maker is overseas, the seller or importer may be the practical target. Some states hold sellers responsible for defective products.
• These files often need a tolling agreement because of lab schedules. Watch the deadline from day one.
• Review the release with the release checklist, then close with the standard closing letter and the deductible reimbursement letter.

4. Letters for this loss

Sources

• Spoliation ruling for failing to follow ASTM E860, E1188, and NFPA 921 (National Law Review)
• ASTM E860, practice for examining items that may become involved in litigation
• Statutes of limitations vs. statutes of repose (MWL)