Posts tagged as:

business interruption

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 [...]

Read the full article →

Utilities Can Be Unique in a Business Interruption Calculation

by John July 20, 2010

When quantifying a business interruption for an insurance claim, many expenses are easily identified as variable or fixed.  When I use the term variable, I mean that the expense changes with sales or production.  As a general rule, variable expenses are usually (but not always) saved and fixed expenses are usually (but not always) continuing.  [...]

Read the full article →

Forensic Accountant John Hutson Interviewed by CNNMoney.com About Business Interruption Issues Related to the BP Oil Spill

by Mary July 16, 2010

John was recently interviewed by CNNMoney.com reporter Catherine Clifford. In her article Florida: BP’s next big mess, John comments about business interruption issues and the impact that the BP oil spill will have on tourism dollars to the hotel and resort industries in Florida and all along the Gulf coast. The Importance of Proper Record [...]

Read the full article →

What’s the Difference Between a BP Oil Spill Claim and a Business Interruption Insurance Claim?

by John July 14, 2010

One word: policy. For BP oil spill claims, there is no policy. For almost two decades, the vast majority of my experience has been in calculating business interruption losses for insurance claim purposes.  Because the amount that a business recovers for a business interruption loss is limited by the provisions within the insurance policy, a [...]

Read the full article →

Gulf Coast Businesses Need Their Own Forensic Accountant

by John July 12, 2010

I recently watched the following video on CNN.  While I have a lot of empathy for the business owner in the story, I think that the angle that the reporter takes in the story shows the reporter’s lack of research into the subject matter by attempting to equate the term “forensic accounting” with “death” for [...]

Read the full article →

Why Should You Document Your Business Interruption Claim from the BP Oil Spill Right Now? Think Hurricane.

by John July 6, 2010
Thumbnail image for Why Should You Document Your Business Interruption Claim from the BP Oil Spill Right Now? Think Hurricane.

Some business owners are choosing to trust BP to “do the right thing” later on and are not immediately hiring a forensic accountant to calculate preliminary estimates of a business interruption loss related to the Gulf coast oil spill.  A business owner or corporate officer could be rationalizing that:  a) BP will pay these losses [...]

Read the full article →

Claims Communication: How to Talk to an Insurance Adjuster During a Business Interruption Loss

by John July 1, 2010

From the time you notify your insurer about  business interruption loss, and you have your first conversation with the insurance adjuster or their consultants, you are being deposed. Of course no one has sworn you in and no one told you that “everything you say can be used against you.” But this is the essence [...]

Read the full article →

Will Professional Fees for Claim Preparation be Reimbursed to Businesses Affected by the Gulf Coast Oil Spill?

by John June 24, 2010

I contacted the Bristish Petroleum claims hotline today and asked them the following question: If a business retains a forensic accountant to quantify, support, and create a claim for their economic damages related to the oil spill, will the forensic accountant’s fees be reimbursed? I think this is a reasonable question given that this is [...]

Read the full article →

How to Expedite Payment for a Business Interruption or Business Income Claim Related to the Gulf Coast Oil Spill

by John June 21, 2010

I recently read a story in the New York Times that discusses the lack of payment to business owners affected by the Gulf Coast oil spill. I think that the general public is amazed, and outraged, that payments are slow if they come at all. As someone who values large commercial insurance claims, I am [...]

Read the full article →

Should You Continue Paying Your Employees During a Business Interruption Loss?

by John June 14, 2010

The issue of whether or not to continue paying employees during a business interruption loss is one of the most difficult for my clients.  On the one hand, many of my clients have real empathy for their employees, and treat them like family. When their business experiences a loss, they don’t want to see their [...]

Read the full article →

← Previous Entries