NY Power Conference 2011

CLEVELAND, June 17, 2011 /PRNewswire/ -- In today's challenging economic environment, it is crucial for insurance professionals to understand the intent of the insurance contract and the implications of the policy wording on any business interruption claim, said Joseph Scarlato, a director with Meaden & Moore's Investigative Accounting Group, in an address to the 2011 New York Power Conference. Having insight into the underwriting steps that were taken during policy inception and how they affect the claims process can make the business interruption claims process much easier.

It is not unusual to encounter situations where the intent of a policy is not clearly conveyed in the policy language, said Scarlato. "The focus of claims professionals should be to understand the risk as it was intended by underwriters so that the end result should be a complete and deserved indemnification for the insured," he said.

Scarlato explained that deductibles in power losses can be challenging. "It may be understood by all interested parties that the intent is a waiting period or an average daily value of sums insured, but when the claim rolls around, individuals begin to interpret the words in the contract as it was not intended," he said.

In light of the global financial crisis and its impact on accounting records, projections and trends, the "other circumstances" clause has become a particularly important element in claims over the past two years, he said. The clause allows the insurance policy to act properly in the basic principle of indemnification, and it is routinely invoked by interested parties in order to capture the environment the insured would have been operating within had there not been a loss. 

Meaden & Moore was a lead sponsor of the 2011 New York Power Conference, held at The Downtown Conference Center at Pace University to provide insurance underwriters, claims professionals and adjusters with insight and expertise on the latest developments in the power industry. The program focused on developments in renewable and alternative sources of energy, featuring speakers on the latest in tidal wave, solar, and wind energy as well as a Cleveland-based company's efforts to develop a process to extract oil from algae. Most major claims handlers and underwriters of power and energy risks were in attendance, as well as representatives from nearly every major global independent adjusting firm.  Additional event sponsors included Mound, Cotton, Wollan & Greengrass and Douglas G. Petersen & Associates.

Meaden & Moore is committed to meeting the needs of the alternative energy sector with investigative accounting services and expertise that address emerging issues and reflect cutting-edge insights. "Understanding the technical and business issues of alternative energy sources is key to providing our clients with the services and expertise they need," said James Carulas, Chief Executive Officer of Meaden & Moore. The firm is already committed to participating in the 2012 conference.

Based in Cleveland, Meaden & Moore is an accounting and business advisory firm with offices in Akron, Wooster, and Columbus, OH; Chicago and Naperville, IL; New York, NY; Pittsburgh, PA; Charlotte, NC; Atlanta, GA; Los Angeles, CA; and Orlando, FL.

SOURCE Meaden & Moore