Chimney Rock, NC, before and after Hurricane Helene. Photo by the National Oceanic and Atmospheric Administration.
Hurricane Helene has left a trail of devastation across western North Carolina, hitting small businesses particularly hard. (As a side note, I have a vacation rental property located in the epicenter of the damage in Chimney Rock, NC. The devastation is mind-boggling, but so is the entrepreneurial spirit and vows to rebuild.)
As attorneys representing these business owners, you’re on the front lines of helping them recover from potentially devastating financial losses caused by the storm. Beyond the immediate concerns of property damage, many are facing business interruption, lost income, and economic damages that could affect the long-term viability of the businesses they have worked so hard to build.
It’s crucial that small business owners maximize their insurance claims, and forensic accounting services can play a pivotal role in ensuring they receive the full compensation they deserve.
What is the scope of business loss and interruption?
For small businesses, the effects of a hurricane can extend far beyond physical damage. Business interruption claims become essential when income is lost due to forced closures, supply chain disruptions, or customer displacement. In these cases, insurance for business interruption can help cover the loss of business income, but navigating these claims is often complex. Policies vary widely in their coverage for disaster-related business interruptions, and without expert guidance, business owners may be left with a payout far less than what they are entitled to.
Additionally, many business owners may not fully understand the scope of what their insurance should cover. Business loss insurance often includes provisions for rebuilding or repairing property, replacing inventory, and covering lost profits during downtime. Yet, insurance companies may attempt to minimize payouts, particularly in the wake of widespread natural disasters like Hurricane Helene.
What is the role of forensic accounting in insurance claims?
Forensic accountants are uniquely positioned to help small business owners maximize their insurance claims by thoroughly analyzing and documenting the financial losses caused by Hurricane Helene. Whether dealing with property insurance loss claims or business interruption claims, forensic accounting can ensure that no detail is overlooked.
Red Bike Advisors is headquartered in Wilmington, North Carolina, where we’ve seen our share of hurricanes and assisted dozens of small businesses with disaster-related insurance claims. No one would ever have expected the Western half of the state to need these services, but hurricane damage in the mountains is a new reality.
Our forensic accountants conduct a detailed review of financial records, contracts, and policy terms to ensure that the full extent of economic damages is captured in the insurance claim. This includes:
- Assessing the Loss of Business Income: By comparing pre- and post-hurricane financial statements, we calculate the true value of income lost due to business interruption.
- Claim Documentation: Insurance companies often require extensive documentation to support claims, and forensic accountants can compile and present this data in a clear, defensible manner.
Without forensic accounting support, business owners risk underestimating their losses or overlooking key aspects of their claim. This can result in significantly lower insurance payouts, limiting their ability to rebuild and recover.
Helping attorneys navigate the claims process
Attorneys representing small businesses play a critical role in ensuring that their clients receive a fair settlement. Partnering with a forensic accounting firm like Red Bike Advisors can strengthen your case and improve your clients’ chances of receiving the full compensation they are entitled to. We are experienced in navigating complex insurance policies and understand how to challenge insurance companies that may undervalue claims.
By working with us, you’ll have access to expert insight into loss assessment, claim preparation, and negotiation strategies that can make a real difference in your clients’ recovery. We are dedicated to helping small business owners in western North Carolina rebuild and thrive after the devastation of Hurricane Helene.
Help your small business clients get the help they deserve
If you’re an attorney representing a small business facing insurance claims, business interruption, or economic damages due to Hurricane Helene, Red Bike Advisors is here to help. Our forensic accounting expertise ensures that your clients’ losses are accurately assessed, documented, and maximized. Contact us today to discuss how we can assist in maximizing insurance payouts and getting your clients back on their feet.
