INVALUABLE SERVICE OF FORENSIC ACCOUNTANT

Recently, during a regional seminar on forensic accounting, some of the accountants expressed their doubts about the role of Forensic Accountants in the assessment of the various types of insurance claims, and especially a business interruption claim. However, based on my experience, any dispute stemming from a business interruption claim is rare if good forensic accountants are involved. Their involvement at a very early stage of the claim has resulted in the settlement of claim at an exceptionally fast pace which is economically beneficial for the insurer and the insured.

The value derived from the forensic accountant’s technical knowledge of accounting, familiarity with claim processes and ability to examine facts at a micro level, generally result in a more expeditious resolution to the Loss of Profit claim (LOP) and/or material damage claim whether it has resulted on account of breakdown of machineries, fire or any other reasons covered by the policy.