A leading specialist motor services company made a claim under its Business Interruption Insurance policy in respect of the adverse impact of COVID on its business. The client directly engaged with loss adjusters and received an initial settlement offer which they found surprisingly low.
BTG Advisory Forensic Services and the client’s accountants formed a joint consultancy team on a shared contingency fee basis to lead negotiations on behalf of the client with the loss adjusters and insurers. Issues dealt with included turnover growth, rate of gross profit, increased costs of working, overhead expense savings and the impact of Furlough payments. The team was able to demonstrate that the initial offer materially understated the loss suffered and claimable under the terms of the insurance policy. The team succeeded in negotiating settlement of the claim to the satisfaction of the client and which in this case was in an amount greater than the initial offer by a factor of 10.