The Client and Its Challenge
A mining company faced a $48 million loss and was due to make a substantial payment on its loan. Because of the disaster’s impact, the client did not have adequate funds to cover the payment by its deadline, which was two weeks after the loss. At risk of missing loan payments and losing financial support from its bank, the client needed a prompt settlement from its insurance carrier.

The Risk Consulting Solution
Once the client finalized its profit-and-loss statements, Marsh’s Claims Accounting and Preparation Services (CAPS) practice prepared a physical damage, estimated expenses, and business interruption claim. The CAPS staff worked more than 160 hours each in the two-week period to finalize and submit the claim by the deadline. In addition, the team maximized efficiency by immediately incorporating the insurance company into the claims process. By informing the insurer of the claim’s details throughout its progress, the insurer was already familiar with the recovery package by the time it was submitted. Subsequently, the insurance company was able to review and approve the recovery package shortly after submission.

Results
The insurance company offered an initial settlement to the client promptly after the claim was submitted, thereby enabling the company to meet its payment deadline and maintain a favorable standing with its bank. Without the insurer’s timely payment, the client could have lost its financial backing, which would have greatly impaired the business. In addition, the client received maximum recovery according to CAPS’s quantification of the loss. Ultimately, having ample experience with the insurance carrier and strong contacts in the industry, CAPS was able to work effectively with the insurer to settle the claim quickly and favorably.