Thanks for allowing us to discuss yet another important detail on the determination of the actual losses suffered on a business interruption situation. In prior sessions we have discussed about wide area damages, depreciation and other topics. On this opportunity we discussed about the length of the affected period.
As discussed, in general, the formulation of a business income loss has 2 basic components: Time and the value of such time.
We bring forensic analysis and expertise on the determination of the value but determining the “time it should have taken with due diligence and dispatch” or the potential existence of betterments or maintenance requires project management and scheduling expertise. Having worked with CCI in prior situations proved an effective way to complete this determination.
What we have seen in practice is that such expertise not only helps to establish proper timelines and the critical path of the required repairs or replacement of damaged property, a “side effect” is that it also helps identify costs not related to the required reinstatement of the affected operation.
Also, we were involved in case where the insured was appreciative of the fact that, by bringing in scheduling and forensic accounting expertise, they were able to return to normal operations quicker.
Our gratitude goes out to all participants for their interest and attention and also to Alan Purbrick and Capital Consulting (CCI) for sharing their experiences and identifying how to better handle “the time element” of time element claims.
This topics were a taste of what we will see at the 2016 Miami | Latin American Claims (re) Insurance Forum
Juan E. López-Santini CPA, CFF, CFE
Juan E. López-Santini is the resident partner of the forensic accounting firm QLDG – Quintana, López, Donoghue & González, LLP office in Fort Lauderdale, Florida. From that location, the firm mainly attends instructions on the Latin-America region. In addition to this, instructions on matters located in North America, Europe and other international markets are handled by professionals out of this location.