How a Forensic Accountant Can Help with a Business Interruption Claim

Recent city centre fires in both Glasgow and Edinburgh have highlighted the significant financial impact that major incidents can have on local businesses.

The Glasgow Union Street fire in March 2026 resulted in Union Street being closed for four months before reopening in July ahead of the Commonwealth Games. Several surrounding streets that were not directly affected by the fire also remained closed until May. Many businesses reported a substantial decline in customer footfall, with some estimating turnover reductions of up to 40% during the disruption.

Similarly, the fire at the former Debenhams building on Princes Street in Edinburgh has resulted in extensive closures and restricted access across parts of the city centre. The incident has also disrupted tram services to and from Leith, potentially affecting visitor numbers and customer access to local businesses.

When businesses experience financial losses due to events such as fires, road closures, access restrictions, or other unforeseen disruptions, it can be challenging to determine the full extent of the losses suffered. This is where forensic accountants can play a crucial role.

At Henderson Loggie, our Forensic Accounting team helps legal advisers, and insurers quantify business interruption losses and provide robust, evidence-based financial analysis.

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What Is a Business Interruption Loss?

A business interruption loss occurs when an unexpected event prevents a business from operating normally, resulting in lost revenue, reduced profits, or additional costs.

Common business interruption losses include:

• Reduced revenue due to temporary closures or restricted trading
• Declining customer footfall caused by road closures or access issues
• Cancelled bookings, orders, or contracts
• Continuing fixed overheads such as rent, salaries, and utility costs
• Increased costs incurred to maintain operations or mitigate losses

Importantly, businesses do not need to suffer direct physical damage to experience financial loss. Incidents such as the Glasgow Union Street fire and Edinburgh Princes Street fire demonstrate how neighbouring businesses can also be affected through reduced access, safety cordons, transport disruptions, and lower visitor numbers.

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How Forensic Accountants Calculate Business Interruption Losses

1. Establishing the “But For” Scenario

One of the most important aspects of any business interruption claim is determining what the business would have earned had the disruptive event never occurred.

This is known as the “but for” scenario.

To establish this position, forensic accountants typically:

• Analyse historical financial performance
• Identify trading trends, seasonality, and growth patterns
• Review market and economic conditions
• Consider local events and external factors
• Benchmark results against comparable periods

For example, businesses in Edinburgh may normally expect increased tourism activity during the summer months and throughout August’s festival season. Likewise, businesses in Glasgow may benefit from major sporting and cultural events that drive visitor numbers into the city centre.

By understanding expected performance, a reliable baseline can be established for calculating losses.

2. Quantifying the Financial Loss

Once the expected trading position has been determined, it is compared against the actual financial performance during the disruption period.

The difference between the expected results and actual results forms the basis of the business interruption claim.

Our forensic accountants assess:

• Profit and loss accounts
• Management accounts
• Sales records and transaction data
• Customer and booking information
• Trading patterns before, during, and after the incident

A key part of the analysis is ensuring that only losses directly attributable to the disruptive event are included within the claim.

3. Assessing Increased Costs and Cost Savings

Businesses often take steps to minimise the impact of a disruption. These actions can result in either additional expenses or cost savings, both of which need to be considered when calculating losses.

Examples of increased costs may include:

• Relocating operations temporarily
• Additional marketing and advertising expenditure
• Alternative transport or delivery arrangements
• Temporary staffing solutions

Examples of cost savings may include:

• Reduced staffing costs through temporary lay-offs or contract terminations
• Lower utility costs during periods of reduced trading
• Reduced stock purchases

Our team reviews expenditure throughout the affected period to identify any unusual increases or reductions in costs and assess their impact on the overall claim.

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Why Use a Forensic Accountant for a Business Interruption Claim?

Business interruption claims often involve complex financial analysis and can be subject to scrutiny from solicitors, insurers, loss adjusters, and the courts.

A forensic accountant can help by:

• Independently assessing financial losses
• Providing clear, evidence-based calculations
• Supporting legal claims and insurance disputes
• Preparing expert reports suitable for litigation
• Presenting complex financial information in an understandable format

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Expert Support for Businesses Affected by Fires, Road Closures and Other Disruptions

At Henderson Loggie, our Forensic Accounting team regularly assists businesses in quantifying financial losses arising from business interruption events, including fires, access restrictions, infrastructure disruptions, and other unexpected incidents.

We prepare independent, robust reports that clearly explain the financial impact of an event and provide the evidence needed to support claims, negotiations, or legal proceedings.

If your business has been affected by a major incident and you require assistance in assessing your losses speak to a solicitor initially to understand the legal aspects of the claim and to assess whether our forensic accounting specialists can help you understand the financial impact and strengthen your claim.

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