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RECORD 3: SENIOR ADJUSTER FIELD INVESTIGATION REPORT & RESERVATION OF RIGHTS
Claim No.: CLM-2026-90412
Date of Loss: 2026-06-18
Loss Location: Warehouse Pier 4, Savannah River Terminal, Savannah, GA
Adjuster: Gregory Vance, Senior Executive General Adjuster
Claimant: Southeastern Cold Logistics LLC (Cargo Owner)
Loss Description: Severe water inundation damaging 420 pallets of imported temperature-sensitive pharmaceutical goods stored under bailment.

1. INVESTIGATION FINDINGS & ROOT CAUSE ANALYSIS
1.1 Physical Cause of Loss: On 2026-06-18 at approximately 03:15 hours, a major rupture occurred in the internal 6-inch wet-pipe fire suppression overhead riser located inside Bay C of Warehouse Pier 4. Over 140,000 gallons of municipal water flooded the primary cold-storage bay.
1.2 Sprinkler System Maintenance History: Review of facilities documentation indicates the fire suppression system was inspected and recertified by Coastal Fire Safety LLC on 2026-01-10 (159 days prior to the date of loss). Inspection satisfies the 180-day certified inspection condition under Endorsement No. 14, Section 2 Exception.
1.3 Subcontractor Infiltration & Breach of Warranty:
    The rupture occurred while an unvetted third-party electrical contractor, Delta Apex Mechanical Services, was executing overhead conduit installation near the riser.
    Harborfront Logistics admitted during interview that:
    a. No written indemnity agreement was executed with Delta Apex prior to commencing work;
    b. Harborfront failed to obtain a Certificate of Insurance from Delta Apex naming Harborfront as Additional Insured.
1.4 Coverage Assessment:
    While the loss occurred inside an enclosed warehouse due to a sudden sprinkler burst (meeting the exception in Endorsement 14 Section 2), the complete failure of the Insured to comply with the mandatory Subcontractor Warranty in Endorsement 14 Section 1 triggers the total forfeiture and nullification of coverage for any claim arising from work performed by Delta Apex.
1.5 Action Recommended: Issue formal Reservation of Rights Notice asserting breach of warranty under Endorsement 14, Section 1(c).