Commercial Insurance Claims for Business Interruption
An unexpected natural or man-made disaster can stall your operations indefinitely or outright destroy your business. Everything you worked for is now gone or seriously compromised. Your business interruption insurance will be critical to your survival. Do you know what your business is entitled to under the terms of your insurance policy?
This may be your first and only time filing a claim. Meanwhile, your insurance company has a whole team of experts whose full-time job is to assess property damage claims to protect their interests. Is it an even match? Who’s looking out for you?
After a suffering a catastrophic loss, business interruption insurance (or business income insurance) provides a cash cushion to replace lost revenue equivalent to what you would have earned had the loss not occurred. So during the down time, bills, payroll, and other expenses are paid positioning your business to resume operations once repairs are made. When working through a business interruption insurance claim, you and your insurance company need to reach an agreement on a number of variables, chiefly the period of interruption and how long the insurance company will pay. This time frame will vary depending on the extent of damages as well as the nature of your company’s operations. How you handle your business interruption insurance claim will have a profound impact on your ability to recover from a loss.
Business income insurance claims can be very subjective, so it’s crucial to fully understand what your business is entitled to under the terms of your insurance policy. Having a GMAI public adjuster on your side will help alleviate the burden of dealing with your business interruption insurance claim. Our team of public adjusters, forensic accountants, and certified public accountants are experts in successfully negotiating business interruption insurance claims and loss mitigation for businesses in Michigan, Indiana, Illinois, Minnesota, and the greater Midwest. We will help you achieve financial recovery and get you back in business sooner.
Make sure you fully understand the meaning of each of the following before you move forward. Feel free to reach out to us for a no-cost discussion about your claim.
Can my in-house accounting staff handle my claim?
Should I give the insurance company’s accountant everything he/she is asking for right away?
Will the insurance company advance money to continue my operations?
Why is a claim strategy so important?
Am I impacted by coinsurance?
Can I keep paying my employees?
The insurance company is engaging a forensic accountant. What is his/her role? Why can’t you just have your accountant prepare your claim? Understand that you will need to share your financial statements. You may also have to produce your tax returns. Can you recast your financial statements? If so, why?
Is there coinsurance in your policy? If there is, what does it mean? If there is, did your insurance adjuster explain it to you?
Are you entitled to an advance from the insurance company? What is reasonable?
Utilizing proformas/budgets to calculate loss of income.
What are expediting expenses? How do they differ from extra expenses?
What are extra expenses? What can be included?
How do you project lost sales? What about new products? Sales declines?
Credit for continuing sales. How are they calculated? What if you have another location and your policies are not blanket? What if they are blanket?
What is the extended period of indemnity, and how does it work?
What happens if you open your business elsewhere and you are successful? What if you are not successful?
Can you continue to pay your employees?
“Ordinary” employees vs. “Key” employees. How do they get classified? What is covered?
What is your broker or agent’s role? Will he/she be adjusting the claim? How many claims has he/she handled? Will his/her role be active or passive? Does he/she have an accounting degree? When faced with supporting your position or the insurance company’s, where will he/she stand?
Property Damage Losses Commercial Claims Recovery Process
Life & Safety Issues
Mitigation of Damages
Establish A Preliminary Recovery Plan
Evaluation of Coverages
Valuation Of Damages, Claim Preparation, and Documentation
Months after the storm passed, the County was still faced with tremendous burdens related to the insurance coverage issues and FEMA and MEMA eligibility issues. Jackson County hired Adjusters International to provide professional services for disaster assistance, remediation, restoration and recovery efforts....Their expertise with governmental regulations, the complex FEMA process and insurance adjustments resulted in our successful claim for over $2 million in additional FEMA Public Assistance funding specifically; in our successful negotiations with our insurance carrier; and in numerous other increases in the values FEMA and MEMA initially designated for County projects. Jackson County will always be mindful of the help we received from Adjusters International when we needed it most.
Alan K. Sudduth
County Administrator - Board of Supervisors, Jackson County, Mississippi
When I experienced a fire in my home, I immediately contacted your insurance company. You both worked and fought very hard to insure that I had received all the monies due to me under my insurance policy and also made sure that my house got put back together, right... I would highly recommend your services... Your service, professionalism and dedication to my claim were more than I could ask for.
Homeowner, Grand Rapids, MI
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