Posts tagged as:

claims process

What’s the Difference Between a BP Oil Spill Claim and a Business Interruption Insurance Claim?

by John July 14, 2010

One word: policy. For BP oil spill claims, there is no policy. For almost two decades, the vast majority of my experience has been in calculating business interruption losses for insurance claim purposes.  Because the amount that a business recovers for a business interruption loss is limited by the provisions within the insurance policy, a [...]

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Gulf Coast Businesses Need Their Own Forensic Accountant

by John July 12, 2010

I recently watched the following video on CNN.  While I have a lot of empathy for the business owner in the story, I think that the angle that the reporter takes in the story shows the reporter’s lack of research into the subject matter by attempting to equate the term “forensic accounting” with “death” for [...]

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Why Should You Document Your Business Interruption Claim from the BP Oil Spill Right Now? Think Hurricane.

by John July 6, 2010
Thumbnail image for Why Should You Document Your Business Interruption Claim from the BP Oil Spill Right Now? Think Hurricane.

Some business owners are choosing to trust BP to “do the right thing” later on and are not immediately hiring a forensic accountant to calculate preliminary estimates of a business interruption loss related to the Gulf coast oil spill.  A business owner or corporate officer could be rationalizing that:  a) BP will pay these losses [...]

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Claims Communication: How to Talk to an Insurance Adjuster During a Business Interruption Loss

by John July 1, 2010

From the time you notify your insurer about  business interruption loss, and you have your first conversation with the insurance adjuster or their consultants, you are being deposed. Of course no one has sworn you in and no one told you that “everything you say can be used against you.” But this is the essence [...]

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How to Expedite Payment for a Business Interruption or Business Income Claim Related to the Gulf Coast Oil Spill

by John June 21, 2010

I recently read a story in the New York Times that discusses the lack of payment to business owners affected by the Gulf Coast oil spill. I think that the general public is amazed, and outraged, that payments are slow if they come at all. As someone who values large commercial insurance claims, I am [...]

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How to Document Employee Time Related to a Business Interruption Insurance Claim

by John May 20, 2010

All reports from Nashville indicate that the city, its residents, and businesses are working towards recovering from the terrible flood.  Companies that experienced a business interruption loss due to the flood may choose to use their own employees to perform clean up and repairs to the physical facilities.  If your business is using its own [...]

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Don’t Skimp on the Graphics for a Soft Cost Insurance Claim

by John March 1, 2010

In the wake of a major accident or delay on a construction project, don’t start pinching pennies when it comes to the graphics needed to submit a soft cost insurance claim. Every soft cost insurance claim should contain two critical graphics. The first is the “Extent of Damage” graphic.  This graphic is a general schematic [...]

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Why Do You Need a Forensic Accountant Hired Gun?

by Bob Trompeter February 23, 2010
Thumbnail image for Why Do You Need a Forensic Accountant Hired Gun?

In the 1960 movie The Magnificent Seven, Steve McQueen and Yul Brynner were hired to protect a small Mexican town from outlaw Banditos.  The Mexican villagers realized they needed to fight fire with fire by employing their own hired guns. When adjusting a business interruption loss the insurance company often hires an outside forensic accountant [...]

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Buyer Beware: Why Your Forensic Accountant Needs the Right Creds

by John February 21, 2010

The forensic accountant is a strange animal. Did you know that there are no ‘official’ credentials required for an individual to claim he is an ‘expert’ in the field of preparing a business interruption insurance claim?  I have seen some experts with undergraduate degrees in accounting, economics, finance, engineering, computer science, mathematics, even philosophy.  I [...]

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Schools: Beware the “Loss Of Market” Exclusion When Submitting a Business Interruption Insurance Claim

by John February 17, 2010

Following Hurricane Katrina, I was retained to help a private school quantify its business interruption loss.  I valued the business interruption loss related to the period of restoration as well as the extended period of indemnity. The first hurdle was getting the adjuster to understand that a school doesn’t make widgets.  What I mean is [...]

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