Published:  25-Aug- 2011  | Product Category:  Financial and Professional, Risk Consulting | Comments: 0         

In today’s challenging economic and financial environment, risks of fraud and other fidelity and liability exposures are on the minds of many corporate executives.

According to data from the National White Collar Crime Center, arrests for fraud and embezzlement spiked during the two most recent recessions. White-collar fraud arrests jumped 52 percent over two years after the 1990 savings and loan crisis, and arrests jumped 25 percent in the two years following 2000’s Internet bubble burst. Recovery from financially crippling incidents such as employee theft, embezzlement, and fraud, and any resulting directors & officers and shareholder derivative liability lawsuits can be essential to your company’s finances, operations, and overall success.

Obtaining assistance from your insurers and maximum financial recovery of your losses will be important—perhaps crucial—to the future of your organization. In such times of crisis, you can rely on Marsh Risk Consulting’s Forensic Accounting and Claims Services (FACS) Practice to assist you in identifying potential areas of fraud, quantifying your losses, and accurately presenting your insurance claims and claims against responsible third parties so that you can resume business as usual in a timely manner.

Service Highlights

Organizations who have financial and professional liability insurance coverage routinely engage FACS to handle large and complex losses. We have helped clients with matters such as asset misappropriation of cash, inventory and other assets, crime claims, and shareholder derivative suits.

Our consultants are experienced in analyzing claims of larceny, skimming, and fraudulent disbursements stemming from a variety of methods such as lapping schemes, receivables, billing schemes, commission schemes, check tampering, unrecorded/underreported sales, and fictitious expenses. FACS’ extensive expertise within the insurance claims industry combined with our knowledge of fidelity and liability claims has led to repeat clients who have come to rely on FACS for claims consulting and analysis, particularly when every recovery dollar counts.

Fidelity Claims

When confronted with allegations of employee theft or fraud, companies must take quick and decisive action. FACS helps companies obtain the information they need to manage the situation, take appropriate action, and resume business.

Our forensic accountants and certified fraud examiners are experienced in preserving and recovering evidence and interviewing employees, basing our investigations on our knowledge of the potential questions that must be answered to satisfy insurers. We work with law enforcement and regulatory agencies and will testify under oath as required as expert and fact witnesses.

We also work with colleagues in our Financial and Professional (FINPRO) Practice to assist with preparation of the proof-of-loss and coordinate with insurers to help maximize insurance recovery. Involving FACS from the inception of the investigation can help enhance the credibility of an insurance claim and maximize the likelihood of full insurance recovery, including, where applicable, recovery of investigative costs.

Liability Claims

Following an incident, there are a range of liability issues that need to be managed from the insured’s perspective, as well as for responsible third parties and their insurers. There is often a delicate balance involved in satisfying the legitimate claims with a company’s desire for insurance recovery and maintaining important relationships. Furthermore, a successful liability claims process relies on securing adequate corroborating data and supporting information from claimants during the early stage of claim review, as there will most likely be limited access to documentation (and customers) after the initial review period.

• preserving and recovering evidence in a timely fashion to help defend claims made against the client;
• measuring economic damages sustained as a result of third party losses (i.e., product recall, liability, etc.);
• assisting in the evaluation and defense of all claims made against the client, while recognizing the importance of preserving certain existing business relationships; and
• assisting the client in perfecting claims against the client’s insurers, or responsible third parties, and their insurers.

With FACS’ assistance, clients are better equipped to protect their resources and reputation, secure their bottom lines, and maintain daily operations.

FACS Technology

FACS supports its work with two powerful tools to assist in expediting the recovery of your claim. FACSconnect and FACSdb are both highly customizable, easy-to-use systems that provide quick and secure online access to project information—including control over access privileges based on the level of involvement of each user.

• FACSconnect is a web-portal that allows users to share information, manage documents from start to finish, and review and provide comments.
• FACSdb is a robust, database tool that compiles, manages, and distributes large amounts of claim data efficiently and accurately.

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