High-prolife cyber incidents at brands such as Jaguar Land Rover, Marks & Spencer, Co-op, Harrods highlight how devastating a data breach or IT failure can be. But it’s not just large corporations that are affected.
When operations are halted or invoicing and payment systems are compromised, there’s a ripple effect across the supply chain - impacting customers, employees and smaller suppliers.
And while cyber-attacks make the headlines, disruption can come from many sources - from natural disasters such as fire or flood, to supply chain failures or breaches of contract. Even a temporary shutdown can lead to serious financial loss through no fault of your own.
What is a Business Interruption Loss?
When loss occurs, one of the most important - and complex - questions is: what exactly is the loss?
Quantifying the financial impact is rarely straightforward. The goal is to assess what position the business would have been in but for the incident.
Factors to consider include:
Whether any relevant contracts, policies or agreements define how losses are calculated
Financial forecasts and performance expectations prior to the incident
The company’s recent trading performance and stage in its lifecycle
Wider market trends and external factors
Steps taken to mitigate the loss
Any costs saved during the interruption
The duration of the disruption and whether all losses have been captured
The overall impact on business value
Lost opportunities arising from the event
Why Expert Quantification Matters
A well-supported loss of profits claim or insurance claim relies on robust, evidence-based financial analysis. Underestimating or overstating losses can lead to disputes, delayed settlements or missed recovery opportunities.
That’s why having experienced forensic accountants by your side is vital.
How Dains Forensic Can Help
Having the right legal and accounting support is critical. At Dains, our forensic accounting specialists are regularly appointed to quantify losses for both insurance claims, commercial litigation, and business interruption disputes purposes.
If your business has experienced disruption and you need clarity on the financial impact, our dedicated advisors can help you assess, evidence and recover your position - so you can move forward with confidence.