A Fire Spread to Richmond Baking Company

Richmond Baking Company and Charter Oak Fire Insurance Company filed a $532,841.03 lawsuit in April 2019 against Richmond Power and Light and the City of Richmond. It was about a small fire spread from a transformer to Richmond Baking’s facility. As the fire could have been caused by possible negligence in maintaining the electronic supply lines and using a defective transformer in providing electricity by RP&L and the city, Charter Oak refused to cover the claim. Instead, the insurance company wanted the electric utility and the city to take full responsibility and pay the damages to Richmond Baking. Without insurance coverage, Richmond Baking could have suffered from the additional expenditure. This case examines the company’s risk exposure and whether it could mitigate all its risks.