Loss of Business Profits
Interruptions to normal business operations can have a severe impact on that business’s service delivery and, therefore, its ability to raise income and maintain profits. Interruptions may vary in severity and duration and may be caused by a number of factors, the most common being fire and flood.
Other unforeseen circumstances may arise from:
- A breach of contract resulting in loss of profit damages
- Fraud such as embezzlement and theft
- Personal injury
- The death of a key employee
- Contingent circumstances where, for example, employees are unable to reach their workplace due to flooding
Loss of profit claim
At Grid Forensic Accounting, we work closely with our clients to calculate the loss of business profits in the event of a business suffering unforeseen interruptions. We take the following considerations into account:
- The profits the business would have earned had the incident not occurred.
- Whether the business had to be moved to a temporary location.
- The restoration period, i.e. the time it will (has taken) for the business to begin operating at an optimum.
These findings can then be presented to the business’s insurers.
The cost of a calculating loss of profit
Fees may vary depending on the complexity of the client’s situation, the amount of documentation required for assessment and the extent of any relevant investigations.
Because everyone’s needs and situations are so different, it is not possible to provide an exact costing. We can, however, assist by reviewing the prospective client’s information at our obligation-free initial consultation and provide an estimated cost at their request. No charge will be made for this review should they not continue with our services.