How we can help with business interruption claims

Business interruption claims can arise from any number of situations: from professional negligence claims related to the construction of new premises or the expansion of existing premises; to insurance claims related to mandatory closures due to lockdown or disruption to operations due to an insured event such as a fire.

Whether or not you have a claim is something that your solicitors will be able to assist you with.

As forensic accountants, we can help to quantify the losses that you have suffered (the quantum aspect of your claim).

We have significant experience of and can assist with, considering the profits (or losses) that might have been made had the event or incident not occurred. Sometimes this is straightforward but often, it is not and that’s where we can help. Business interruption claims often arise when a business is changing. Examples include expanding and moving to new premises. This can make estimating lost profits more complicated than simply looking at previous results. We can assist by interpreting trends in financial results, considering business plans for expansion including, for example, grant applications and recruitment plans, new contracts and opportunities, increased capacity and potential costs saved.

We also have experience of vouching any extra costs of working incurred to keep the business operational.

But in order to do any of this, we need information from you, as the business owner.

Top tips for business owners if you think you have a claim

If you think that you may have a business interruption claim, there are a few things that you can do to make the quantum aspect of the claim a lot more straightforward. We have noted below some top tips for business owners if you think you may have a business interruption claim:

1. Keep records! If you’ve had to turn down work that you would otherwise have been able to accept, make a note of it. It doesn’t need to be huge amounts of detail but contemporaneous notes showing the date of contact, nature of the job you’ve had to turn down and contact details for the potential client can provide a good basis for showing that you’ve not been able to expand as you should have.

2. Similarly, if you’ve been unable to fulfil contracts or have had to cancel them then keep all correspondence, notes of calls, etc.

3. Details of delays in the completion of work eg due to supplier delays or due to the disruption of staff having to work from home. For example:

  • If your business relies on customers walking through the door then an analysis of footfall and average customer spend;
  • Details of extra costs incurred due to the business interruption event;
  • Details of any costs saved.

4. Any business plans you have prepared whether for internal purposes, to obtain financing or grant funding or for another purpose.

Get in touch

If you think you may have a business interruption claim, speak with your solicitors in the first instance, but the forensic accounting team here at Henderson Loggie will be happy to discuss the quantum aspects with you.

Christine Rolland

Christine Rolland

I have specialised in forensic accounting since 2009. I was an integral part of the Scottish forensic accounting team in a top-five UK accountancy firm, before then going on to spend four years working as…
Peter Graham

Peter Graham

I have specialised in forensic accounting for over 20 years with senior positions within a Big 4 firm and a specialist practice prior to joining Henderson Loggie in 2017. I have extensive fraud and accounting…