Moore Kingston Smith acts for care home in business interruption claim

Moore Kingston Smith’s forensic accounting team acted as expert advisers for a care home involved in a business interruption insurance coverage dispute.

Experienced in insurance-related business interruption quantum disputes, the forensic accounting team was instructed because the company had incurred claimable business losses due to prevention from operating. The team arrived at a business interruption quantum calculation specific to the insurance policy. With each policy differing in its precise details, there is no set formula.

The forensic accounting team worked closely with the business owner and their instructing solicitor, involving numerous meetings, intricate fact-finding and familiarisation. They ran loss models on different scenarios, assisting the legal team in arguing the claim. A key factor in the calculations was to isolate those losses arising as a direct consequence of the home closure.

Along with the quantification of the losses, the forensic accounting team prepared a detailed advisory report with accompanying calculations which led to the insurers opting to settle out of court via mediation. The outcome was that the insurers paid out based on the forensic accounting team’s calculation, resulting in a fair and just settlement that was pleasing to the business owner and his legal team.

The solicitor involved in the case stated: “Moore Kingston Smith’s forensic team was expert at quantifying the business interruption losses suffered by the business, specifically in the context of the insurance policy. They made the process as painless as possible and were vital to the result secured for the client.”