Hurricanes Harvey and Irma has left not only massive physical damage, but also tremendous and long-lasting economic problems in their wake. Following such catastrophic circumstances, the performance of a business can be severely affected, which may result to temporary halt in operation and loss of profit. In times like this, Business Interruption (BI) insurance can offer essential protection to businesses of any size, structure or industry specialization. As the name suggests, BI insurance covers the loss of income caused by the interruption of business operation from an insured event, including natural disasters and other variety of causes stated in the policy.
This type of insurance is complex and diverse in its nature to accommodate the needs of different businesses. There are also many considerations that a business must evaluate before purchasing coverage. Because of this, it is important that businesses understand BI insurance to identify the most suitable coverage for the organization.
Listen as a panel of distinguished professionals and thought leaders organized by The Knowledge Group provide the audience with an in-depth discussion of Business Interruption insurance. Speakers, among other things, will also offer helpful insights on choosing the most appropriate coverage for various businesses.
- Some of the major topics that will be covered in this LIVE Webcast are:
- Business Interruption and Contingent Business Interruption Defined
- Policy and Insurance Coverage
- Indemnity Period
- Additional Coverage and Extensions of Coverage
- BI Policy Complexities and Confusions
- Coverage Issues in an Event of Loss
- Computing BI and CBI Losses
- Best Practices in Choosing Coverage
Katherine J. Henry, Partner, Bradley Arant Boult Cummings LLP
- Understand the coverage that you are purchasing: BI/CBI insures loss of income and extra expense from physical damage to your property (BI) and other organizations’ property (CBI) resulting from a covered cause of loss.
- Understand the law and policy language on concurrent causation, which can dramatically limit the scope of coverage.
- Select limits based on a comprehensive assessment of a business interruption’s impact on your organization.
- Consider optional coverages such as extra expense and utility interruption.
- Understand period of indemnity and consider purchasing extended period to accommodate needed ramp-up time.
James L. McGovern, Founding Partner, McGovern & Greene LLP
- Claimants need to carefully review the policy coverage and present their claim in accordance with the policy requirements;
- Historical results, recent trends, and forecasts should all be considered when estimating losses;
- Lost Revenue does NOT equal Lost Profit. Claimants need to account for expenses avoided in order to properly identify “incremental profits” lost due to the interruption;
- Claimant’s should be prepared to show efforts to mitigate losses;
- Well documented claims are appreciated by adjusters and auditors and are more likely to be processed quickly.
For more information about the webinar, visit The Knowledge Group website.