Invoice Review / Incurred Cost Validation is an important part of many loss projects.
Of primary importance is being able to segregate normal operating costs (or contract costs in a builders risk situation) from the loss related costs. Integrity professionals, often in collaboration with our forensic accounting partners will work with the insured to develop a system and protocol for the collection and presentation as well as coding of costs. Separate codes will be used to segregate direct physical damages from debris removal, expediting, machinery, code improvements, betterments and other appropriate expense categories. Invoices will be categorized to the relevant portion of the loss, reviewed for reasonableness as compared to the previously prepared damages assessments and scopes of work.
This effort results in a document to assist the adjuster in evaluating submitted costs, the relevance to the various portions of a loss and to assist them in determining coverage.
