Case Studies
J.S. Held Acquires Technorm, Québec’s Leading Forensic, Building Safety & Compliance Experts
Read MoreA fire occurred in an XPS manufacturing facility, which destroyed all areas of the facility, including the storage warehouse.
The insured claimed its entire sum insured for property damage, including stock (finished goods, raw materials, and work-in-progress). J.S. Held calculated USD 0.8M based on a review of the financial data.
The incident led to a virtually total loss; therefore, no physical count was possible. We performed an out-of-sight analysis using the books and records of the insured, which included:
Both of which were found to be materially accurate. No adjustments were necessary for stock accuracy, as the last count occurred just two months before the incident, with a minor upward adjustment made to indicate slightly more physical stock present than the system record. Obsolescence was irrelevant due to the nature of commodity products, with XPS boards usually not remaining in stock for more than seven days.
The insured’s finished goods valuation included an allocation of fixed overheads, representing double the count with the BI claim and our main adjustment. Work-in-progress was claimed at the sum insured and was found to be higher during our review. Therefore, the settlement was capped. Raw materials were claimed as per the perpetual inventory system valuation. Consequently, we reviewed sample invoices showing the historic cost, deemed reasonable. The J.S. Held calculation was included in the overall settlement figure.
Daniel Thorpe
Executive Vice President
Forensic Accounting - Insurance Services
+971 56 658 3620
[email protected]
> Inventory / Stock Losses
Our team provides financial expertise to assess the precise volume and value of inventory or stock that is lost or damaged as a result of adverse incidents such as fraud, arson, theft, or natural disasters. Our experts conduct physical examinations; compile and review underlying accounting records; and employ industry data to identify, document, and value inventory. We help clients to quantify their loss and determine total damages in terms of replacement costs; selling price; associated consequential losses and other ancillary costs such as transportation, freight, and taxes.
> Forensic Accounting
Our Forensic Accounting Practice includes Certified Public Accountants, Certified Fraud Examiners, Certified Financial Forensics experts, and other financial experts who specialize in financial investigations, dispute resolution, and regulatory compliance. We deliver the truth behind the numbers in financial matters involving insurance claims and disputes, business interruption/lost profits, cyber damages, Delay in Start-Up (DSU) / soft costs, extra expense, family disputes, fraud, labor & employment disputes, personal injury damages, and bankruptcy/insolvency.