If Your Company Isn’t Using Insurance Claims Investigation Services, You’re Overpaying Claims

While organizations remain willing to take any financial responsibilities as may be caused by their actions, however that doesn’t make the liability claim a blank check. To ensure that claims are fair and accurate measures of their legal responsibility, insurers and other liability carriers appoint and use forensics accounting services and insurance claims investigation.

Don’t Pay Unreasonable Losses

Some liability costs are easy to calculate. As the case may be with an accident causing a damage that will cost $50,000 to repair, it might be reasonable for the responsible party to pay the liability. However, in many such cases, the scenario may be too complicated for the parties to compute exactly how much loss was incurred.

You could take for example an apartment complex that had delayed possession due to the mistake of the construction company. In such a case the apartment owner may seek rental revenue compensation calculating the reimbursement based on 100% occupancy, whereas there is no real chance for a new apartment to get a tenant immediately and thus the assumption made doesn’t help compute the amount. Moreover, these liability calculations can become even more complicated and vague when they are to involve nebulous concepts like suffering and pain.

Forensic Accounting Services calculate Realistic Losses

Forensic accounting services are a financial specialty that focuses on risk, exposure and loss, thus helping to calculate losses taking into account any imprecise aspects and then turning them into concrete figures based on an objective method to ensure a fair value.

They are capable of providing more accurate and detailed analysis than the claimants. While the typical liability may be calculated based on superficial examinations, these experienced risk management professionals take into notice any other aspects that help come up with fair and realistic calculations of the losses incurred. Claimants can often be generous in the estimation of loss and carriers that to not investigate insurance claims may end up overpaying on the claims.

Uncovering Fraud

While most overestimated liability cases are unintentional with claimants misunderstanding policy limitations, overvaluing assets etc., some may be deliberate attempt to mislead the liability carrier too. Insurance claims investigation studies the case objectively to ensure that the carrier can build a strong case against the misguiding claimant.

The carrier may require expert litigation support to strengthen the case in court. Forensic accounting services or insurance claims investigations carried out by third parties are definitely more credible than when carried out by the carrier itself. This is not only due to lack of vested interests but also specialization and experience to handle such cases efficiently.

Thus to be sure that they are paying fair losses on their policies, liability carriers must have a program of forensic accounting services or insurance claims investigation. Besides protecting the carrier from overpaying the claimant, it also keeps the client’s premiums down.