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Business Interruption – Fire at Manufacturer

Business Interruption – Fire at Manufacturer

Our firm was hired by a law firm to assist in the determination of a business interruption loss involving a manufacturer of office furniture after a fire damaged their inventory and production facility.

Our role involved reviewing the manufacturer’s financial records to quantify the value of the lost inventory and the loss of income. The matter eventually proceeded to litigation and we were asked to attend the mediation in order to provide our comments on the report prepared by the other side’s forensic accounting firm. Our investigation uncovered the fact that the insurance claim filed was fraudulent, as the source documents were altered and forged by the manufacturer in order to exaggerate the claim.  The senior partner who attended the mediation and was able to successfully establish that the claim was overstated.

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