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It Depends

Is it a Saved Expense or is it a Witch?

by John April 21, 2010
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I love the Monty Python skit where a mob of peasants wants to burn a woman for being a witch. When the person making the decision asks, “How do you know she is a witch?” The crowd responds, “She looks like one!” Such is often the case with saved expenses in a business interruption claim. [...]

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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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Does Asset Depreciation Continue During a Business Interruption?

by John January 18, 2010

The answer to that question is, “it depends.” There are a couple of things to consider. First, was the asset physically destroyed in the event or not? If the asset was destroyed, then depreciation usually discontinues under the theory that an asset that no longer exists can’t depreciate. The assumption is that the insured party [...]

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