Business interruption is probably the most complex and misunderstood property insurance coverage. It is intended to replace the lost business income and continuing expenses resulting from a covered loss. However, insurance policies provide very little guidance regarding the method to be used to calculate a policyholder’s business interruption recovery. This analysis may be highly subjective.

Insurance carriers will invariably retain the expertise of a forensic accountant specially trained in this type of analysis. Because the insurance company accountant works with business interruption claims every day, even the most savvy business owner or executive may have a difficult time navigating through the wave of information requests and calculations.

The business interruption claim process goes far beyond the exercise of calculating the recoverable loss. It includes the gathering of voluminous information, loss mitigation decisions, and the need for advance payments to fund operations, all prior to a final claim settlement. The entire process is littered with pitfalls, and getting through this is critical to the survival of a business.

The solution is to have matching expertise on your team. At Quantum our team of forensic accountants has worked on thousands of business interruption claims, and this experience is invaluable to a policyholder.