Proving an Insured Loss: Policyholders Need Experts Too: Insure for this Additional — But Necessary — Expense
Proving an Insured Loss:
Policyholders Need Experts Too
Insure for this Additional — but Necessary — Expense
By Harvey Goodman, SPPA
Accidental damage to machinery at its Midwest plant leads to a complex business interruption loss for a metal processing firm. The firm initially struggles to calculate the damages on its own. Their claim is not accepted by the accounting firm hired by the insurance carrier, whose settlement offer is only one-third the company’s calculation.
To prove their claim, it is necessary for them to seek outside assistance at their own expense, as the cost to prepare and support their claim is not covered under their policy. The company hires an engineer, a professional loss consultant and an accounting firm.