3 Reasons to Get Help - Now!
With Hurricane Matthew riding up the east coast, policyholders may have property damage and business interruption concerns. If it's been awhile since you've had a significant claim, we wanted to share a few ideas to help you through the claims process.
Any experienced forensic accountant will tell you, "The faster you get your claim together the faster you’ll achieve a positive settlement." If you have a property and business interruption claim, getting your claim together, i.e. measured, documented and supported properly can be daunting, so for many policyholders the process drags out far longer than it should. And the longer it takes, the harder it is to recover what you deserve. Savvy risk management professionals know that they need help from the start, so they bring in the forensic accountants, specializing in claim preparation to augment their internal resources and expedite the process.
Here are three reasons why you should get help with your claim immediately following a loss, especially a catastrophic loss:
1. Loss estimates and reserves
Insurance companies set reserves based on estimates defined early in the process. They will have experts assigned to establish reserves and once they’re set, they prefer not to increase them. You never want them set too low. How can you ensure reserves are set appropriately? You’ll need the help of forensic accountants to make sure the “potential loss” is properly assessed and communicated, thus avoiding the dreaded understatement. During a CAT loss scenario like a major hurricane, the adjustment team will be overloaded with work, so it is imperative your accountants are involved from the start to police the reserve numbers.2. Competition
If you go to a restaurant (get in the door) and notice a large group about to enter, what do you do? Well, if you want to eat any time soon, you better get in the door before the large group. CAT insurance claims are the same only instead of waiting for your meal; you’ll be waiting for your money. If you want to get through the claim so you can get back to business, you need to get in the door fast. Once you have your version of the loss prepared, your loss accounting experts will know what to do e.g. submit interim claims for advanced payments. During a CAT claim, always be prepared for a settlement meeting. Insurers will be looking for the well-prepared claims to settle and get off the books. 3. Experience. Experience. Experience.You can’t expect your own people to be experts at something if they don’t have adequate experience. Insurance accounting requires a unique skill set developed through experience. Immediately after a disaster, hire experienced forensic accountants that you can trust and depend on for advice and a quality work product. If your team is organized and know what they’re doing, the adjuster will be more likely to spend their time on your claim over other less organized policyholders. Having an advocate that specializes in insurance claims on your team will lead to a faster and smoother claim process, especially after a CAT event.
After decades of representing policyholders through complex CAT claims, we understand the importance of a fair and fast recovery. If you have suffered a loss caused by Hurricane Matthew or another peril, we’re here to help you recover your losses - fast!
Contact us for a no obligation consultation!