From the category archives:

values at risk

What is a Coinsurance Penalty?

by John July 30, 2010

When I work with clients who suffer a business interruption loss, one of the questions I often encounter is, “What is a coinsurance penalty and why am I not getting paid for my entire loss?” In short, if a policy has a coinsurance clause it means that the business must maintain a minimum amount of [...]

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Schools Should Plan For a Reasonable Extended Period of Indemnity

by John April 7, 2010

Schools have several aspects that make them unique risks when evaluating values at risk for a business interruption loss. One of the areas that separates schools from other industries is that there is often a huge lag, or ramp up, for the school to repopulate following a major disaster. I’ve recently heard from brokers who [...]

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Shred Those Values At Risk Worksheets

by John March 23, 2010
Thumbnail image for Shred Those Values At Risk Worksheets

Brokers often ask me which business interruption values at risk worksheets I prefer or think are the best.   I guess the answer depends on if you want to use them to wrap fish or make paper airplanes.  Aside from those two uses, they are all about equally worthless.  I know this sounds harsh, but [...]

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Lost Sales May Not Be Covered by a Business Interruption Insurance Claim

by John February 2, 2010

I hear this from clients a lot: “But we have business interruption insurance for our lost sales!  If we have business income coverage, doesn’t the insurance company have to pay us for our lost sales?”  This issue in particular can be really frustrating for risk managers, corporate officers, and business owners. I usually answer this [...]

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Why Take Time to Adjust Values at Risk?

by John January 25, 2010

I hear it all the time: we were busy.  We were in a period of growth!  How could we stop our work in the middle of this booming period to evaluate our business income values at risk?  Besides, we don’t really want to talk to the insurance broker again–they’re always trying to upsell us, right? [...]

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Rethink Your Values at Risk to Save Money

by John January 22, 2010

If your business carries business interruption insurance, you’re responsible for determining and reporting your values at risk to your insurance company.  Many businesses come up with this number one time in order to place business interruption coverage, and then don’t think about their values at risk number again–sometimes for years. Businesses that carry business interruption [...]

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