Service

Insurance claims services

Post-disaster economic recovery often entails the filing of complex property damage and business interruption insurance claims.

When catastrophic events such as natural disasters occur, employee safety and well-being should be the first priority. Once these needs are met, business owners and risk managers will likely begin to consider the road to economic recovery by seeking compensation from their insurance carriers for damages and interruptions to their operations. 

Disasters of this magnitude can cause significant losses―from damage to property, damage to customers and suppliers, and supply chain disruptions. Post-disaster economic recovery often entails the filing of complex property and business interruption insurance claims. Companies may not be equipped with the resources or the experience to deal with the many challenges that this can bring.

KPMG is well-positioned to provide assistance to companies with operations in the storm-impacted areas. We have extensive experience advising clients on complex insurance claims for business interruptions arising from natural disasters. We can assist with the review and evaluation of complex insurance claims, including property damage, business interruption, extra expenses, and inventory losses.  We can also assist companies with insurance claim related matters and understand the process involved in preparing, documenting, and evaluating claims. We know how to achieve results in an ethical, efficient and professional manner.
 

KPMG in action

Explore how we have helped state, local and federal governments in the wake of a natural disaster.


Damages and losses: Hurricane Irene

KPMG’s Insurance Claims Recovery team assisted in providing forensic accounting services to a health care organization to support an insurance claim for damages and losses caused by Hurricane Irene. The assistance included aggregating costs related to damages, determining the business interruption loss suffered, and assisting the client to present the claim to the insurance company.



Insurance claims: Hurricane Sandy

KPMG provided forensic accounting services to an entertainment venue to support an insurance claim filed for damages and losses following Superstorm Sandy. The engagement included determining the business interruption loss suffered due to response and related actions by civil authorities.



Flood damages: Hurricane Sandy

KPMG provided forensic accounting services to multiple retail stores to support an insurance claim filed for damages and losses caused by Superstorm Sandy. The work included aggregating costs from flood damages, determining the total business interruption loss, and assisting the client to present the claim to the insurance company.



Insurance claims services include:

Property damage

  • Review and analyze insurance coverage policies
  • Identify and evaluate real and personal property damages (e.g. facility damages and inventory losses)
  • Identify and evaluate additional physical losses (e.g. debris removal, demolition, and increased cost of construction)
  • Coordinate claim program with management’s recovery plan
  • Compile and organize costs and supporting documentation
  • Categorize and verify expenses incurred as a result of the incident
  • Identify potentially uninsured damage amounts
  • Compile supporting documentation

Business interruption loss

  • Evaluate the lost profits and sales during the loss period
  • Evaluate and analyze industry data, market demand and trends
  • Understand and evaluate direct and indirect cost savings
  • Review historical operational financial records
  • Assist in reviewing financial projections
  • Prepare business interruption valuation report
  • Calculate damages solely attributable to the incident
  • Compile supporting documentation

Extra expenses

  • Compile and verify the additional costs incurred as a result of the incident
  • Set up ERP and accounting systems for tracking additional costs incurred as a result of the incident
  • Identify period of indemnity
  • Review and analyze expenses incurred during the recovery period
  • Compile and organize extra expenses supporting documentation 
  • Quantify incremental personnel expenses (e.g. overtime, additional expenses incurred for hourly employees)
  • Identification of potential residual value
  • Compile supporting documentation 

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