From the category archives:

business interruption

How to Use the Correlation Coefficient in a Business Interruption Calculation

by John March 11, 2010

When preparing a business interruption calculation for an insurance claim, one of the most common statistical tools I use when evaluating continuing and non-continuing business expenses is the correlation coefficient. The correlation coefficient can be found using analysis tools found in spreadsheet software, using specialized statistics software, or by calculating the values with a [...]

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Gratitude & Business Interruption Loss: Do These Two Things Go Together?

by John March 8, 2010

Every February 24th, without exception, my phone rings, and without fail the phone call catches me by surprise. This year, I was in the middle of sorting through a pile of debris on my desk, when the voice on the other end of the phone said, “No matter how bad things in your life [...]

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Business Interruption Claim Presentation: The Three Column Approach

by John March 5, 2010

There are many ways to format a business interruption calculation for an insurance claim. Each method is unique and there isn’t a “one size fits all” method that works for every business income loss.  However, there is one method that I use repeatedly,  which is referred to as the “Three Column Approach.”  In the [...]

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Is It Worth It To Hire A Forensic Accountant To Prepare Your Business Interruption Insurance Claim, Regardless of Fee Coverage?

by John March 3, 2010

I am often asked by potential clients if my forensic accounting fees to prepare a business interruption insurance claim will be reimbursed by the insurance company.
This question is completely valid because professionals who are experts in business interruption claims are not cheap, and risk managers, corporate officers, and business owners want to clearly understand what [...]

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Professional Services Firms Need the Right Extra Expense Coverage and a Rock Solid Business Continuity Plan

by John February 19, 2010

I am often asked to assist professional services firms, such as attorneys, accountants, engineers, and doctors, with estimating their business income values at risk.  My advice to professional services firms is often the same:  assume you will collect nothing for your lost business income.  I know that this advice sounds harsh and may seem shocking. [...]

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Schools: Beware the “Loss Of Market” Exclusion When Submitting a Business Interruption Insurance Claim

by John February 17, 2010

Following Hurricane Katrina, I was retained to help a private school quantify its business interruption loss.  I valued the business interruption loss related to the period of restoration as well as the extended period of indemnity.
The first hurdle was getting the adjuster to understand that a school doesn’t make widgets.  What I mean is that [...]

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Private Schools: Avoid This Potential Pitfall

by John February 13, 2010

When it comes to preparing a business interruption loss insurance claim, one industry that is very unique is private schools. Private schools have specific risk exposures that can quickly turn into a problem if the exposures are not addressed before a loss occurs. One such issue relates to tuition and the contract signed [...]

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What To Do When the Adjuster Blames the Economy for Your Business Interruption Loss

by John February 8, 2010

“Due to the economic crisis…”
This is the current preamble of choice for adjusters to inform a risk manager, corporate officer, or business owner that a business interruption loss will not be paid or will be extremely reduced.  Do I sound a little angry as you read this?  I’ll admit that this current approach by many [...]

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Tips for Assembling a Disaster Recovery Team

by John February 5, 2010

After a fire, flood, earthquake, or other major disaster, corporate officers, risk managers, and business owners are faced with making quick decisions related to disaster recovery. When the unthinkable happens, there are many different professionals or services that a business may need to hire quickly in order to minimize a business interruption.
I’ve worked with many [...]

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Flip Video Camera Can Help Document a Soft Cost or Delay in Completion Claim

by John February 3, 2010
The Flip video camcorder can help you.

When a major construction project experiences a loss, a contractor is suddenly faced with the daunting task of documentation for the insurance claim.  To document a construction soft cost or delay in completion insurance claim, the insured party should video tape the damage, recovery, and general project progress on a weekly basis.
If you’re the “Clerk [...]

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