The Client and Its Challenge
A flood swept through a radio manufacturer’s production facility in Mexico, damaging three of its operating divisions. Since the facility produced most of the company’s supply for North America, it needed to restore production quickly to avoid major and lengthy disruptions to its supply chain.

The Risk Consulting Solution
The client retained Marsh’s Forensic Accounting and Claims Services (FACS) Practice to manage the loss measurement of the three operating divisions affected by the flood. The FACS team began by coordinating activities among the three divisions to measure the flood damage. Spanish-speaking consultants were assigned to the engagement to maintain efficiency and accuracy in the reports and to avoid translation costs. The consultants then measured property damage, extra expenses, and business interruption costs. To aid in the insurer’s review process, the FACS team also appropriately classified the extra expenses and property damages.

Over the course of two years, FACS consultants consistently updated the claim, keeping the insurer advised of incurred costs and obtaining periodic payments for the client.

Results
The client has received more than $20 million in payments from its insurer and expects a final settlement once the repairs to the facility are complete. The advance payments have allowed the client to reinstate and maintain its Mexican operations even though its claim has not yet been finalized. Upon the final settlement, the client is expected to fully recover from the loss.