Business interruption claims in Ireland: what an independent loss assessor costs

What the fee pays for on a lost profit claim

On a business interruption file, the assessor's work goes well beyond inspecting damage. It starts with a detailed review of the policy schedule and wording: the basis of cover, the indemnity period, the sum insured and any extensions for suppliers, customers or denial of access. A misreading at this stage can cost far more than the fee itself.

The assessor then works with the business owner and its accountant to reconstruct expected trading, gathers management accounts, VAT returns and payroll data, prepares a monthly loss schedule, documents increased costs of working and negotiates every figure with the insurer's loss adjuster and, frequently, the insurer's own forensic accountant. Follow-up continues until the indemnity period ends and the final settlement is signed.

• Policy analysis and confirmation of the trigger for cover
• Attendance at site meetings with the loss adjuster
• Reconstruction of standard turnover and trend adjustments
• Monthly loss schedules and interim payment requests
• Negotiation of savings, increased costs and average
• Final settlement and discharge documentation

Indicative fee bands in euro

Ireland has no official scale of fees for public loss assessors. Fees are a matter of contract between the assessor and the client. The table below is an indicative order of magnitude observed in the market, not an official or legal scale, and individual firms may sit above or below it. As in most countries, the percentage usually falls as the size of the claim rises.

For business interruption specifically, some assessors apply a slightly different rate to the profit element than to the material damage element, or cap the fee on very long indemnity periods. Always ask how the combined claim will be charged.

Indicative amounts, to be checked with each expert.

Percentage, fixed fee or hourly billing

The most common model in Ireland is a percentage of the final settlement agreed with the insurer, payable when the money is received. It aligns the assessor's income with the result, and the client pays nothing up front. The key question is the base: the percentage may apply to the whole settlement, to the settlement excluding sums already offered before appointment, or only to the additional amount the assessor secures.

For large commercial losses, some firms agree a fixed fee, a capped percentage or time-based charges for defined phases of work. Hourly or daily rates are more common for specialist accountants than for assessors. Whatever the model, check whether there is a minimum fee, which can make a short interruption disproportionately expensive.

VAT, accountants and other extras

Fees are normally quoted exclusive of VAT, which is charged at the standard Irish rate on top. A VAT-registered business may be able to reclaim the VAT on the fee, which changes the real cost considerably; ask your own accountant.

The cost of a forensic accountant is a separate item to check. Some loss assessors include accountancy support in their percentage, others pass it on at cost, and some policies contain a specific clause covering professional fees for preparing a claim. Travel, copying, specialist engineers and legal advice in case of a dispute should all be addressed in the engagement letter.

Does the policy pay for claims preparation?

Many Irish commercial policies include a clause covering professional fees, such as architects, surveyors and engineers, needed to reinstate the premises. A separate claims preparation costs clause, more common in larger commercial policies, may cover accountants' fees for preparing the business interruption claim. Fees charged by a loss assessor to negotiate against the insurer are often excluded from these clauses, or covered only up to a limit.

Read the wording carefully: it may set a monetary cap, require the insurer's prior agreement, or limit cover to fees for producing information the insurer requests. Where cover exists, the fee you actually bear can be much lower than the headline percentage suggests.

Small, medium and large interruptions compared

Small claims, such as a café closed for three weeks after an escape of water, often attract the highest percentage because the core work of reading the policy, gathering accounts and meeting the adjuster does not shrink in proportion to the amount.

Medium claims, perhaps a manufacturer losing several months of production, are where the percentage and the effort tend to balance. Large claims involving a long indemnity period, multiple sites or supply chain extensions see lower percentages but substantial absolute fees, and often a negotiated cap.

A worked example

Take a hotel in the west of Ireland closed for five months after a fire. Material damage is agreed at €400,000 and business interruption at €260,000, a total settlement of €660,000. At an indicative 6 % on the combined amount, the assessor's fee would be €39,600 plus VAT. If the engagement letter instead applied 10 % only to the uplift above an initial insurer offer of €450,000, the fee would be €21,000 plus VAT. The same headline figures produce very different bills, which is why the base of calculation matters more than the rate.

These figures are illustrative only; the real fee depends on the contract signed, the complexity of the file and the outcome.

Comparing firms and reading the letter of engagement

Ask at least two firms for a written proposal. Compare experience with business interruption specifically, not just property damage, and ask whether they work with an in-house or external accountant. A lower rate is of little value if the firm lacks the skills to argue a trend adjustment or an extended indemnity period.

The letter of engagement should state the rate, the base, the minimum fee, how VAT applies, what happens if you end the mandate early, which costs are extra and when payment falls due. Check the firm's Central Bank of Ireland authorisation and be cautious of anyone who guarantees a specific settlement before seeing your accounts or who pressures you to sign on the day of the incident.

• Fee base clearly defined: total settlement or uplift only
• Minimum fee and any cap stated in euro
• Treatment of accountants' and engineers' costs
• Cancellation terms and cooling-off arrangements
• No promise of a guaranteed result

For a lost profit claim, the right question is not only how much the assessor charges but on what base and for which services. expertdassure.com suggests comparing written proposals side by side before the indemnity period starts running.