How Forensic Accounting Helps with Business Interruption Loss Calculation
Due to the importance of the situation, it is vital that you get a business interruption loss calculation right the first time round. A forensic accountant will have the experience and technical prowess to oversee the entire process on your behalf; from evaluating policies and indemnity period, to calculating expected and lost revenue.
Forensic accountants will act on behalf of claimants, loss-adjustors, or insurers to perform a robust investigation into the case to determine its validity, and, crucially, quantify the amount of damages incurred. The processes involved in an investigation will use a variety of complex accounting techniques to calculate losses and devise an action plan.
With the investigations complete, a forensic accountant will also be able to help in the negotiation stages, their goal being to achieve the best possible result for their clients. It is a truly all-encompassing service that takes the stress away from what will already be an incredibly difficult time.
Given that a business interruption loss calculation can be extremely complex, and the stakes high, it is essential to seek out specialist assistance from a forensic accountant at the earliest opportunity. The burden of proof will be entirely on the claimant, so it is important to leave absolutely nothing to chance.
Who Hires Forensic Accountants for Business Interruption Claims
Forensic accountants can be instructed by all parties involved in business interruption claims, whether they be the claimants themselves, their legal team, a loss-adjuster, or an insurer. Their technical and data analysis expertise are often crucial to achieving a satisfactory result.
A specialist forensic accountant will be able to assist with the claim from start to finish, ensuring that everything is taken care of in terms of investigation and evaluation. Since business interruption claims require a lot of evidence gathering and a comprehensive understanding of the numbers, many parties will look to forensic accountants to cover the essential skills they simply do not have.
What are The Different Types of Business Interruption?
Types of business interruption come in many different forms. From a long-term loss of connectivity, to natural disasters and everything in between, the impact of these events can be catastrophic to a firm’s bottom line. This is why business interruption insurance is so crucial.
Common types of business interruption include:
- Fire damage
- Flooding
- Natural disasters
- Long term loss of connectivity
- Cyber attacks
- Third-party actions
The Business Interruption Claims Process
While it may seem incredibly complex, it is essential that the business interruption claims process is carried out to the letter. Even the briefest of pauses to a company’s operations can cause real damage, so compliance is crucial. There are many stages to the procedure, from developing a plan and calculating losses, to negotiating a settlement.
Thankfully, a forensic accountant can assist with all stages of the process, giving you the best possible chance of achieving a satisfactory outcome. The business interruption claims process is as follows:
Free eBook: The Complete Guide to Forensic Accounting
Whether you’re in the middle of a divorce, are having a disagreement with a fellow shareholder, you’re accused of/have been victim to financial crime, or are the subject of a POCA order, there is a huge variety of ways a forensic accountant can assist and support you through any situation, no matter how complicated.
Whatever your situation, our free guide to forensic accounting is designed to help you to better understand the work done by our team of experts. We cover how the process works, when a forensic accountant’s skill set can help you, their specific areas of expertise, and much more.
How Inquesta Helps with Handling Business Interruption Claims
Given that proving financial loss due to business interruption can be an incredibly daunting prospect, it is essential to seek out specialist assistance. This is where Inquesta thrives.
Our team has amassed a wealth of experience in supporting claimants, loss-adjusters, and insurance providers, and is dedicated to achieving the best possible results for our clients.
We conduct thorough investigations that leave no stone unturned, while also offering essential advice and support throughout the entire process. It is this holistic and all-encompassing service that has seen us become a leading name in our field.
Using our decades of specialisms, we are the right people to quantify damages and assess the validity of a business interruption claim.
Get In Touch
Our Specialist Team
We have put together an expert team of forensic accountants that can assist with all aspects of financial loss cases due to business interruption.
Rob Miller
Director of Forensic Accounting
A co-founder of Inquesta, Rob Miller is a chartered accountant, a member of the Institute of Chartered Accountants in England and Wales (ICAEW), and a Practising Member of The Academy of Experts.
With decades of experience in providing specialist forensic accounting services, Rob has been instructed to assist with numerous cases — such as financial investigations, criminal defence and confiscation proceedings, commercial and contractual disputes, valuation matters, and much more besides. He has acted on behalf of claimants, defendants, and as a single joint expert.
“Rob Miller is my first choice for forensic accountancy on criminal cases. He has an impressive eye for detail and adopts a ‘user-friendly’ approach to interaction with our clients and other professionals which ensures the smooth running of any task we instruct him to undertake.”
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