Commercial Insurance Claims for Business Interruption
Your company can be affected by an unexpected natural or man-made disaster that stalls your operations indefinitely. Your business interruption insurance will be critical to your survival. Do you know what your business is entitled to under the terms of your insurance policy?
An interruption to your business can be difficult to measure.
Business interruption insurance is meant to cover the amounts you would be expected to earn if the disaster had not happened and suspended your operations. When negotiating a business interruption claim with your insurer, a key part of a business interruption claim is determining the extent of the period of interruption and for how long the insurer will pay on the claim. There are several areas of business interruption claims that can be subjective, so it may not be a straightforward discussion with your insurer. If they are tending to their interests, who’s looking out for you?
Our public adjusters have unmatched experience in successfully negotiating business interruption insurance claims to help you to mitigate the extent of your losses. We evaluate all the variables of your loss and prepare a comprehensive claim to present to your insurer to help you achieve financial recovery and get back in business.
Make sure you fully understand the meaning of each of the following before you move forward. Feel free to reach out to us for a no-cost discussion about your claim.
Can my in-house accounting staff handle my claim?
Should I give the insurance company’s accountant everything he/she is asking for right away?
Will the insurance company advance money to continue my operations?
Why is a claim strategy so important?
Am I impacted by coinsurance?
Can I keep paying my employees?
The insurance company is engaging a forensic accountant. What is his/her role? Why can’t you just have your accountant prepare your claim? Understand that you will need to share your financial statements. You may also have to produce your tax returns. Can you recast your financial statements? If so, why?
Is there coinsurance in your policy? If there is, what does it mean? If there is, did your insurance adjuster explain it to you?
Are you entitled to an advance from the insurance company? What is reasonable?
Utilizing proformas/budgets to calculate loss of income.
What are expediting expenses? How do they differ from extra expenses?
What are extra expenses? What can be included?
How do you project lost sales? What about new products? Sales declines?
Credit for continuing sales. How are they calculated? What if you have another location and your policies are not blanket? What if they are blanket?
What is the extended period of indemnity, and how does it work?
What happens if you open your business elsewhere and you are successful? What if you are not successful?
Can you continue to pay your employees?
“Ordinary” employees vs. “Key” employees. How do they get classified? What is covered?
What is your broker or agent’s role? Will he/she be adjusting the claim? How many claims has he/she handled? Will his/her role be active or passive? Does he/she have an accounting degree? When faced with supporting your position or the insurance company’s, where will he/she stand?
Property Damage Losses Commercial Claims Recovery Process
Life & Safety Issues
Mitigation of Damages
Establish A Preliminary Recovery Plan
Evaluation of Coverages
Valuation Of Damages, Claim Preparation, and Documentation
Our loss was certainly not easy to measure. Your staff of building experts prepared a greatly detailed building estimate that carefully measured all of our damages. Much of our stock was also damaged to varying degrees, which made the detailed quantification and evaluation a very difficult task. Our equipment and machinery was still operational, yet you were able to negotiate a generous repair/damage allowance for machinery that was exposed to water and potential future corrosion. Our business interruption loss was also quite complicated. While we were able to complete most of our current orders at that time, we suffered a substantial loss of opportunity. Our normal margin was eroded by inefficiencies due to working in a damaged facility. Your team of professionals successfully identified and demonstrated this loss by developing a model which measured and supported that loss of opportunity and allowed us to recover appropriately. Your experts accurately interpreted our policy so that we could utilize all aspects of our coverage, and all aspects of our loss - even those which we didn't initially recognize - were skillfully measured. Adjusters International managed to minimize the impact of a very serious co-insurance clause, which saved Gerber hundreds of thousands of dollars. Your personnel dealt admirably with the language barrier, the substantial travel time to and from the loss sites and the numerous parties involved in our loss, and eventually negotiated very favorable settlements.
Advisor. Consultant. Prognosticator. Trusted friend. Today’s insurance broker wears many hats while assuring that his or her client has the best protection possible. As business insurance grows more ...