Inventory Cases

A paint supply company suffered a fire at its main distribution warehouse and claimed an inventory loss of over $800,000. The majority of the damaged inventory was burnt out-of-sight, so the claim could not be corroborated by examining the damaged inventory.

To verify the reasonableness of the claimed loss, we reviewed historical inventory count sheets, purchase invoices, sales reports. Based on analysis of such records, we determined that the claimed inventory quantities appeared reasonable. However, we noted that a portion of the claimed inventory was greater than 3 years old and was considered obsolete. The obsolete items were excluded from the settlement of the claim.

One of the world’s largest snack foods makers suffered a severe inventory loss. The company’s insurer quickly deployed a member of our team. The company was on the verge of issuing its quarterly earnings to Wall Street and wanted the issue resolved swiftly.

We responded immediately to the assignment and were in constant communication with the company’s accounting department. We analyzed the records, determined the amount of the insured loss and issued our report within 7 business days. The company met the deadline and had high praise for the insurer and our team member.