Quote:
Originally Posted by Exhibitman
Insurers don't just roll over on major claims like this. Google "examination under oath" and the cooperation clause of a policy: the owners of the place are likely going to undergo a forensic accounting analysis of their last three years' taxes and finances akin to an IRS audit, then be examined in depth about the specifics of the loss. The insurer will likely retain an expert in sports memorabilia to create its own market valuation on the loss once it has the details pinned down.
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Yeah, there will likely be several EUOs. They will want to see the insured's books for several years and, if they have other businesses, the books from those businesses too. I would imagine that there will ultimately be a failure to cooperate claim because carriers think they are entitled to everything, no matter how tangential, and at some point the insured will call bullshit on that and bow up because it is bullshit. Then there's the referral to the Special Investigation Unit (SIU) for fraud. Pretty standard stuff. Seen it 1000 times.
To some degree the amount of hassle depends on the carrier, but the script is pretty predictable, particularly if it is being reported as a Large Loss according to the carrier's internal policies regarding the amount of the claim. Then it generally goes to a different unit and a different adjuster. If the claim is being presented as over $200K, most carriers are going to view that as a Large Loss. Hope it all works out and don't envy them.