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We offer a wide range of services to businesses and individuals that are the victims of natural disasters, fires, theft, and vandalism.
Our process for assisting insureds with disaster claims includes:
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Identify, Assess and Document the Property Damage and quantifying property losses, reimbursable expenses, damages and business interruption claims.
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Compiling documentation to support additional living expenses and other reimbursable or recoverable costs after a loss event.
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Assembling the documents and records to support the dollar amount of the expenses, losses and claims.
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Calculating the business interruption, damages and lost profit amounts.
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Advising the client/insured, legal counsel and other experts relating to insurance loss claims.
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Preparing the schedules and analysis supporting the loss claim to be submitted to the insurance company for reimbursement.
We are an integral part in helping businesses and individuals when compiling the necessary documents and records and computing the loss claims for damages.
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We are experienced working with insurers that process and defend claims from natural disasters, and other insurable casualties and events. Our experience reviewing damage claims for insurance companies, and our understanding of the insurance company's claims procedures and protocols, are invaluable when computing damages and maximizing the amount of insurance recoveries.
While we are diligent in our efforts to cause a timely resolution of the claims, we also understand their urgency, stress, anxiety, and the magnitude of the financial strains on businesses, owners, employees and the affected families and we are sensitive to our client’s journey as business owners and individuals as they pursue normalcy in their lives.
Our extensive knowledge and diverse experience with more than 16 industries and 40 types of businesses, many of which are regulated by federal or state government agencies, sets us apart from others.
Our understanding of industry-specific accounting principles, standards of operation and business practices is invaluable when embarking on the complex task of computing business interruption damages and lost profits.
With more than 35 years of accounting, auditing, forensic accounting, and investigation experience, we can reconstruct accounting records from incomplete, damaged, or missing information. If necessary, we will collaborate with computer forensic specialist to recover damaged electronic records.
No task or challenge is insurmountable.
Our mission is to prepare fair, unbiased, and credible business interruption and lost profit damage calculations used by the insured or their attorney to file a timely loss claim with the insurance company and avoid costly litigation.
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Our commitment to excellence is backed by generally accepted methods of computing damages, the thorough evaluation of relevant facts and circumstances, business trends and statistical data, reliable historical records and tax returns, and supportable and realistic assumptions.
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Our goal is to not only see our client’s loss claim being processed expeditiously, but they also receive fair compensation from the insurance company consistent with the terms and conditions of the applicable insurance policy which are necessary to rebuild the business and return to normal operations.
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The consequences of filing over-stated or unsupportable claims are costly and should be avoided.
We approach every engagement with a dedication to truth, integrity, and professionalism. We passionately believe that the earlier the insurer’s claims adjuster sees the quality and thoroughness of our work, the faster our client will receive the insurance proceeds they desperately need. When casualty losses occur because of natural disasters, fire, theft or vandalism, the business owner or his/her management team should be aware of certain minimum action steps which include, but are not limited to, the following:
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1. Review the insurance policy and endorsements and become familiar with the types of coverage and deductibles afforded under the policy, and the specific exclusions that may apply to the insured’s particular facts and circumstances.
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2. Consult with your insurance agent about the loss events that have occurred and seek guidance on reporting the claim.
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3. Immediately report the loss to the applicable insurance carriers following the wording of the policy coverage provisions.
4. Obtain a claim number and inquire of the claims department the timing of the next steps, including when you can expect an adjuster to contact you.
5. Document the losses by date-stamped videos, pictures, and physical inventory listings of the damaged properties.
6. Take immediate action to mitigate future damages, loses and additional expense by protecting property and seeking alternative methods of operating the business during the recovery period.
7. Preserve the paper and electronic business documents and records necessary to substantiate the historical financial performance, profitability, and future business plans.
8. Consult with your income tax or financial advisor about the income tax rules and regulations** relating to deducting losses on the federal and state tax filings and the timing of those elections.
9. Report the interruption of the business operations to third parties in which there is a contractual obligation to do so. For example, a loan document may require a reporting of adverse business conditions or loss contingencies.
10. Notify your CPA or auditing firm about the losses and the condition of your business as these events may result in footnote disclosures and reporting losses in the insured’s financial statements which are distributed to stakeholders, including insurance companies that write other insurance coverage.
11. Notify clients, vendors, and suppliers of alternative methods of contact and continuing operations.
12. Regularly update the company’s website with news about the company.
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To the extent necessary, we will advise our client's and the external accountants and tax advisors in establishing an overall plan to
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Reestablish the business operations, mitigate losses and seek alternative operating methods necessary to sustain the business.
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Identify and quantify the property losses and business interruption claims.
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Assist the insured and their legal counsel in filing the loss claims with the insurance company.
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Return to normal operations and planned growth and opportunities.
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The Process
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We will provide our client with a detailed itemized listing of the documents and records, accounting records, historical financial statements, and tax returns necessary to preparing a claim for losses.
To minimize our time fees and costs, we will utilize the insureds accounting department, to the extent possible, to provide us with the information necessary to the planned scope of work. However, if the insureds accounting, tax, and business records were destroyed or are
incomplete, we will use our decades of forensic accounting skills to reconstruct the records.
If the insured must retain an attorney, to pursue its claims, we will aid the attorney which is necessary to drafting the lawsuit, preparing discovery requests, consulting on financial matters relevant to the claim, assisting with and attending mediations, and preparing for and attending trials.
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We expect our damage calculations to be challenged the insurer’s claims adjusters and, accordingly, we prepare the calculations in an easy-to-follow format using sound practices and generally accepted methods, so the adjuster can easily follow our work, evaluate the calculations, and reach conclusions about the validity of the claim.
We believe that overstating loss claims causes the insurer to dig deeper into the computations, unnecessarily extends the claims process, delays the payment of the claims, and raises issue of integrity about insured and our company which causes the settlement of the claims to be exponentially more difficult.
If the insurer does not believe the insured has made a good faith effort to file a realistic and supportable claim, some or all the claim amounts may be denied or delayed.
Notwithstanding the above, insurers are also known to understate loss claims and delay processing and paying claims even if the insured’s claim is valid.
When our client is unable to obtain a fair and reasonable settlement payment, they may not have another choice but to hire an attorney qualified in first-party litigation. Most first-party attorneys’ work under contingency fee agreements.
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When the client is confronted with the bad faith actions by the insurer, an experience first-party litigator is invaluable in pursuing the resolution and closure of a claim.
In connection with the insured’s retention of a qualified attorney, we will assist counsel in accordance with planned scope of work which typically involves reviewing the loss computations and reports of the insurer’s claims adjuster or experts, assisting with discovery, answering certain interrogatories, attending depositions, and testifying.
The contingency fees usually approximate 25% of the gross settlement proceeds on a pre-suit basis. However, if the attorney is unable to settle the claim on a pre-suit basis, the remaining course of action is to file a lawsuit and/or invoke the appraisal process, if that later option is contractually available to the insured. Once the lawsuit is filed, the attorney’s share of the gross proceeds usually increases to 33 1/3%.
In addition, the attorney contingency fee agreement contains cost provisions which permits the attorney to incur such costs they deem necessary to litigate the claim which includes, but may not be limited to, the following: experts, engineers, contractors, certified public accountants, weather experts, court reporter fees and court costs. These costs can approximate hundreds of thousands of dollars and are deducted from the settlement proceeds after the attorney distributes their 33 1/3% fee. If the case goes to trial, the costs are staggering.
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Therefore, it is imperative for the insurer to stay engaged with their attorney, understand the approach to settlement, and monitor the cost spend.
Even though the insured may prevail in the claim, the insured may not have sufficient funds to repair the property or recover the lost profits and business interruption damages.
When dealing with condominiums, mixed-use condominiums, commercial offices and retail businesses, the unrecovered damage amounts may be allocated to unit owners and lessees through special assessments and cost pass-throughs.
The consequences of filing over-stated or unsupportable claims are costly and should be avoided.
