Posts tagged as:

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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Why Do You Need a Forensic Accountant Hired Gun?

by Bob Trompeter February 23, 2010
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In the 1960 movie The Magnificent Seven, Steve McQueen and Yul Brynner were hired to protect a small Mexican town from outlaw Banditos.  The Mexican villagers realized they needed to fight fire with fire by employing their own hired guns.
When adjusting a business interruption loss the insurance company often hires an outside forensic accountant to [...]

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Buyer Beware: Why Your Forensic Accountant Needs the Right Creds

by John February 21, 2010

The forensic accountant is a strange animal. Did you know that there are no ‘official’ credentials required for an individual to claim he is an ‘expert’ in the field of preparing a business interruption insurance claim?  I have seen some experts with undergraduate degrees in accounting, economics, finance, engineering, computer science, mathematics, even philosophy.  I [...]

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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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How to Recap a Phone Conversation With Your Insurance Adjuster

by John February 10, 2010
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When dealing with an insurance company representative regarding a business interruption loss insurance claim, it is prudent to operate under the assumption that if it is not in writing, it never happened.  Verbal meetings to discuss a business income insurance claim can be very productive, whether they happen face-to-face or over the phone.
However, I always [...]

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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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