MDD was retained by an independent adjusting firm and insurers to review the economic damages claimed in relation to a production loss on a major television series. The production was delayed as a result of the writer becoming sick and being unable to meet the delivery schedule. The writer was sick for three weeks; however, as a result of re-organizing the production schedule, the delay was 4 days.
Our role included assessing the claim for additional payroll and rental expenses incurred. We were required to analyze the payroll records provided to determine if employees who were paid during the affected period actually worked, thus providing a benefit to the insured. Additionally, we reviewed rental agreements and contracts to determine if any contracts had to be extended as a result of the delay. Based on our review, we made an appropriate determination of the additional costs incurred as a result of the delay versus the normal costs that would have been incurred in any event.