The Client and Its Challenge
A government contractor was unable to work because of a three-day hurricane evacuation. Since the company could not make up the billable time at a later date, it faced a significant loss. The insurer, however, contended that the client did not suffer a loss because no contracts were cancelled or changed by the temporary closure.

The Risk Consulting Solution
The client retained Marsh’s Forensic Accounting and Claims Services (FACS) Practice to coordinate the claim. To measure the loss, FACS consultants assembled detailed worker records that demonstrated the amount of chargeable time that might have been worked if not for the evacuation shutdown. FACS consultants then compiled detailed reports of contracts, work histories, and interviews with client personnel that demonstrated the nature of the contract, which was such that the period of time lost to the closure could not be made up in the future.

Results
The insurer offered a settlement of $500,000, more than three times the amount that the client initially estimated for the loss.