Who does the work, and what it involves
Two profiles usually support the insured. A public adjuster manages the claim overall, coordinates the property and income components, negotiates with the insurer and keeps the file moving. A forensic or claims accountant, often a CPA, builds the loss calculation: projecting revenue, analysing variable and continuing costs, quantifying extra expense and responding to the insurer's own accountants.
Smaller businesses may engage a single firm that combines both roles; larger losses often justify separate specialists working together. Either way, fees pay for document gathering, modelling, interim claims, meetings and the final settlement.
The insurer will usually have its own accountants on the file from early on. Matching that expertise on the insured's side keeps the debate technical and avoids the insurer's model becoming the default simply because no alternative was presented.
Indicative percentage bands for adjusters
No official scale exists in Canada. The table on this page summarises an indicative market order of magnitude for public adjuster fees on business interruption files and is not a regulatory tariff. Percentages are generally lower than on residential property claims, because amounts are larger and a share of the technical work may be done by accountants billed separately.
| Business interruption claim (CAD) | Indicative adjuster fee | Accounting support |
|---|---|---|
| Up to 100,000 | 10% to 15% | Often a few thousand dollars, hourly |
| 100,001 to 500,000 | 8% to 12% | Hourly, budget agreed in advance |
| 500,001 to 2,000,000 | 6% to 8% | Dedicated forensic team |
| 2,000,001 to 10,000,000 | 3% to 6% | Multi-phase engagement |
| Over 10,000,000 | 1% to 3% or capped | Bespoke, often with fee caps |
Indicative amounts, to be checked with each expert.
Contingency, hourly and hybrid arrangements
Public adjusters typically charge a percentage of the amount recovered. The base must be clear: the whole business interruption settlement, the net amount after any waiting period, or only the increase over the insurer's documented offer. Accountants usually bill hourly, with rates that vary by seniority, city and firm size; as a broad indication, senior forensic accounting time in Canada can range from a few hundred dollars per hour upward.
Hybrid formulas are common on larger claims: a reduced percentage combined with a cap, or an hourly fee with a success component. Ask for minimum fees, retainers, disbursements and the treatment of interim payments to be set out in writing.
- Percentage of the settlement or of the increase
- Hourly accounting fees with budget estimates
- Capped or stepped percentages on large claims
- Retainers and monthly billing for long files
GST, HST and disbursements
Professional fees are generally subject to GST or HST, plus QST in Quebec. A registered business may be able to recover input tax credits on these fees, which affects the real cost; ask your own accountant. Disbursements such as travel, data extraction or industry reports should be listed in the engagement letter.
Claims preparation and professional fees extensions
Many Canadian commercial policies include an extension that pays reasonable fees of accountants or other professionals for preparing the claim details the insurer requires. These extensions are generally subject to a fixed limit and may exclude fees of public adjusters or fees for disputing the insurer's position. Some require the insurer's approval before the professional is appointed.
In practice, accounting fees for compiling the claim are often at least partly reimbursed, while contingency fees for negotiating it more often remain with the insured. Read the extension and ask the insurer to confirm in writing how it will apply.
From small to major interruptions: worked figures
Small: a restaurant closed for three weeks after a kitchen fire, with an income loss of CAD 60,000. An accountant's fee of CAD 4,000 to 8,000 for a clear calculation may be largely covered by a claims preparation extension; a public adjuster at 12 percent would cost about CAD 7,200 more.
Medium: a manufacturer interrupted for four months, with a claim of CAD 600,000. At 8 percent, adjuster fees would be about CAD 48,000, plus accounting costs, part of which may be reimbursed.
Large: a distribution centre damaged by flood, with a business interruption claim of CAD 6,000,000. A capped arrangement at 3 percent would be CAD 180,000. These examples are illustrative; they do not predict any settlement.
Selecting advisers and negotiating terms
Verify the public adjuster's provincial licence and ask accountants about their experience with insurance claims, not only audit or tax work. Request a written budget or fee estimate for each phase. Compare proposals on the same assumptions: expected claim size, duration and complexity.
Agree how fees apply to interim payments, whether amounts already offered are excluded, and how the arrangement ends if you sell the business or settle early.
Reasonable expectations
Projections depend on evidence, and no adviser can promise that the insurer will accept an optimistic forecast. Be cautious of anyone who guarantees a percentage increase. Credible advisers explain the strengths and weaknesses of the figures and show how the claim will be supported.
Setting a budget before work begins
Because business interruption files can last many months, ask each adviser for a phased budget: initial review of the policy and records, preparation of the first interim claim, ongoing monthly updates and the final settlement. Agree on reporting so that you see accumulated fees regularly rather than at the end.
Where a claims preparation extension exists, share the limit with your advisers and ask them to separate time spent compiling information the insurer requires from time spent negotiating or disputing. That separation makes it easier to present the reimbursable part of the fees to the insurer.
Organisations offering this service
- OmbudService for Life & Health Insurance (OLHI): Independent alternative dispute resolution service for Canadian life and health insurance consumers who are in a disagreement with their insurer.
- Autorité des marchés financiers (AMF): Quebec financial regulator that oversees claims adjuster certification and publishes the forms and competency profiles governing the profession.
- Chambre de l'assurance de dommages (ChAD): Quebec body overseeing the damage insurance profession, including claims adjusters, which publishes annual reports on its supervisory activities.
External links provided for information only; check the terms directly with each organisation.
Frequently asked questions
Will my insurer pay for my accountant?
Possibly, if your policy includes a claims preparation or professional fees extension. Check the limit and any condition requiring prior approval.
Is it better to hire an adjuster or an accountant?
It depends on the claim. Accountants build the numbers; adjusters manage the claim and negotiation. Larger losses often benefit from both.
Are fees deductible for my business?
Professional fees are often treated as business expenses, but tax treatment depends on your situation. Ask your tax adviser.
Can fees be capped?
Yes, caps and stepped rates are commonly negotiated on large claims.
For business interruption claims, understanding which costs your policy will reimburse is the first step to a proportionate budget. expertdassure.com also explains how these claims are handled in Canada.