The Client and Its Challenge
A leading financial institution, located near the World Trade Center, faced exorbitant damages after the attacks on September 11. The company was forced to relocate to continue business operations after the loss. To cover subsequent costs, the company filed a claim with its insurer for extra expense coverage. In the final stage of the settlement process, the client’s insurance carrier denied a critical part of its claim, which was worth millions of dollars.

The Risk Consulting Solution
With the goal of attaining an equitable settlement, the client hired Marsh’s Forensic Accounting and Claims Services (FACS) to handle the negotiations with its insurance carrier. Collaborating with Marsh’s Property Claims Advocacy practice, the combined team worked closely with both the client and the insurer to create a reasonable settlement. Marsh’s consultants evaluated the claim and the carrier’s policy and quantified the loss accordingly.

Although the insurer initially denied a crucial part of the claim, the team effectively convinced the insurance carrier to reevaluate its position. Marsh consultants demonstrated to the insurer that it owed the portion in dispute by clearly illustrating the client’s interpretation of the policy and providing more information about the impact of the loss on the client. Consequently, Marsh consultants were able to settle the dispute favorably for the client, while minimizing any delay to the claims process.

Results
The team protected the client from facing a costly liability. The client received more than twice the amount initially offered by the carrier, enabling the company to fully recover from its multimillion dollar loss.