Chartered Professional Accountants
ACCOUNTING, TAX, AND BUSINESS ADVISORY SERVICES
Business Interruption Losses
When businesses are faced with the aftermath of catastrophic events such as fire, flood, theft, property damage or other accidents, the impact of the damage is immediately felt through loss of business earnings. Generally, businesses that are adequately insured with business interruption coverage are able to recover their lost earnings and restart their businesses within a short period of time.
However, making an insurance claim for lost business earnings can be a difficult task. The difficulty can be attributed primarily to two reasons: unfamiliarity with wordings of the insurance policy and the complexity of calculating the loss. When the loss arising cannot be readily determined, professional assistance may be necessary to calculate the loss in order to support any claims.
We can provide independent reports, either to business owners or to insurance companies, for the purpose of settling business interruption loss claims. Our work in this area would include:
However, making an insurance claim for lost business earnings can be a difficult task. The difficulty can be attributed primarily to two reasons: unfamiliarity with wordings of the insurance policy and the complexity of calculating the loss. When the loss arising cannot be readily determined, professional assistance may be necessary to calculate the loss in order to support any claims.
We can provide independent reports, either to business owners or to insurance companies, for the purpose of settling business interruption loss claims. Our work in this area would include:
- Reviewing the insurance policy coverage
- Performing investigative procedures to determine the validity and integrity of financial information of the insured business
- Analyzing historical financial data using statistical methodologies to identify trends in income and expenses leading to a projection of expected future profitability
- Calculating loss of earnings and expected recoveries
- Preparing a report to summarize findings and provide conclusions
