Business income claims expert witnesses may advise on issues involving loss of revenue, insurance fraud, and related issues. Here Bruce D. Smith, CPA and certified fraud examiner explains:
What is a Forensic Accounting?
The Association of Certified Fraud Examiners (ACFE) explains that, “Forensic accounting is the use of professional accounting skills in matters involving potential or actual civil litigation. The word “forensic” is defined by Black’s Law Dictionary as “used in or suitable to courts of law or public debate.” More simply put forensic accounting is litigation support involving accounting.
The Value of Forensic Accountants in a Business Interruption Claim
In today’s economic environment, everyone is looking for value. In my experience. I have found that the earlier the forensic accountant is involved in the claim process, the more value he/she typically provides. The value derived from the forensic accountant is his/her technical knowledge of accounting and familiarity with the claims process, which may result in a more expeditious resolution to the Business Income claim.
In simple terms, the purpose of Business Income coverage is to indemnify the insured for its net income or loss plus continuing operating expenses during a period of interruption (period of restoration), resulting from a covered loss. In addition, the insured may be covered for additional expenses (Extra Expense), which it incurred due to the loss incident.