Business Insurance Claim consulting

Overview

Deloitte’s Business Insurance Claim (BIC) consulting practice has significant experience assisting clients with large, complicated insurance claims and can provide assistance throughout the insurance recovery process. Our goal is to help our clients prepare their claims and understand the claims process and their options. We assist with the preparation of a defensible and fully documented claim in an efficient manner, often resulting in more timely reimbursement from the insurance carriers.

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Service offerings

• Development of an overall claim strategy
• Assistance in securing cash advances/interim payments
• Calculation of property damage, extra expense and business interruption claims (including contingent business interruption) including proper level of documentation
• Insurance claim preparation and submission
• Provide advice so that our clients can make informed decisions on potential claim agreements and settlements

Typical Triggers

• Direct physical damage
• Damage sustained by suppliers and customers—contingent losses
• Loss of power—contingent losses
• Ingress/Egress—lack of accessible roads or flooding around premises that does not allow access for employees and/or customers
• Evacuation and closure orders of cities, airports, etc.

Types of Losses

• Costs to repair or replace damaged assets
• Business interruption losses—loss of profits (per insurance policy definition)
• Extra/expediting expenses—costs incurred in excess of normal operation costs or to help expedite getting back to pre-loss conditions/operations
• Sue and Labor—costs incurred to protect damaged property from further loss once a loss has occurred.

Types of Valuation

• Dictated by the policy language
• Original purchase cost
• Replacement cost
• Actual cash value (ACV)—replacement costs less physical depreciation
• Deductibles can vary depending on cause of loss

Strategic Considerations

• Using the insurance proceeds to rebuild at a different location
• Taking the opportunity during the repair/replace process to reconfigure or expand (with incremental costs not being recoverable)
  

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