The key to
accurately evaluating a loss claim is the ability to obtain complete financial
information regarding the claimant’s/insured’s occupation or business.
The mutual goals
of the insured and the insurer are to mitigate loss, return to normal operations
as quickly as possible, and to resolve the claim in a reasonable period of time. All this should be done while maintaining positive professional relationships
with all who are involved.
Accurately
projecting the profits that would have been earned but for a particular insured
event requires an understanding of both the insured’s financial reporting and
managing of its affairs, before and after loss. This understanding can only be
achieved after reviewing many claims over a wide variety of business sectors.
We have the skills
and depth of experience to provide you with a realistic and effective valuation
of a business interruptions claim.
Our
professionals understand and are comfortable with concepts that are defined and
inherent in insurance policies.
In addition to
understanding the principles governing business interruption insurance claims,
there are other concepts with which our experienced insurance accountants are
familiar such as coinsurance valuations, reporting forms, blanket coverage,
contingent coverage, etc.
We are available
on a moment’s notice to assist in situations involving business interruption. Our services include:
• Determining
the period over which damage is suffered.
• Analysis of
insurance adjusters’ loss calculations.
• Analysis of
costs to be utilized in calculating the loss.
• Lost profits
pro-formas and projections.
• Evaluation of
insurance coverage to determine amount of recoverable loss.
• Business
valuations “before” and “after” the casualty.
• Analysis of
opposing experts’ reports and testimony.
• Expert witness
services.
Our
professionals consider alternative scenarios and hypothetical results.
In business
interruption claims analyses, the question is not what the enterprise earned but
how much it would have earned had the insured event not occurred. Clearly, there
is no one correct answer to such a question but a varying degree of plausibility
among competing theories. The accountant must go beyond historical company data
to tap additional industry and general information.
