Forensic Accounting
The client manufactures packaging using high technology, high value assets in a continuous 24/7 production regime. A severe power cut resulted in a loss of saleable output for several days, delayed restarts to some equipment, property damage to some assets and performance impairment (restricting output) to others.

Given the major loss, insurers appointed forensic accountants to assist loss adjusters in adjusting the claim. The client required support in presenting and negotiating the claim from professionals who could operate at a detail level so as to satisfy the forensic accountants. Professional services were already being provided to the client by our organisation and we were asked to support the claim.



Objective
The objective of the assignment was to present the claim robustly, manage the information flow between client and adjuster and forensics, and to settle at an acceptable level within a reasonable period of time. The loss occurred towards the end of the client’s financial year and it was imperative to obtain a payment on account against the loss in that year both to support profit and cash requirements.

Approach
A methodology for loss calculation was established. Different detail approaches were established and tested in detail. A chosen presentation and calculation method was developed and agreed. Meetings were held with forensics, adjusters and insurers and the claim presented in several parts representing different stages of the loss.

The disclosure of information and agreement of information to be disclosed was carefully managed in order to maintain both credibility and control within the process. When parties were together to settle, the opportunity was taken to bridge the gap between valuations and settle the claim.

Outcome
The client achieved their imperative of a payment on account within the year of the loss. The overall claim was settled within nine months of the loss and the client overachieved their expectation of settlement value. The client achieved a great deal of credibility through the process and this was remarked upon during post claim feedback.

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