Business Interruption Claim Support: Avoiding Detours to Achieve a Successful Settlement

Broadcast Date: Sunday, October 20, 2013 from 10:00 am to 12:00 pm (ET)

Overview:

Business interruption claims can often take unexpected turns along the path to settlement, particularly for insureds with infrequent or complex claims. This program will share information about identifying available coverages and formulating preliminary loss estimates, as well as the most effective ways to develop and document a comprehensive claim. In addition, best practice examples will be provided on presenting claims in ways that anticipate carrier questions. Finally, advice from our experienced team will be shared about how to effect a fair and timely settlement and drive the claim process to closure.

Agenda:

1. Recent Catastrophic Losses and What’s On the Horizon
- Large PI / BD events, including supply chain issues
- 2013 Hurricane season update
- Hurricane Sandy update and lessons learned
2. Overview of Property Damage and Business Income Coverages
- Property Damage insuring requirements
- Typical coverage elements for BI and contingent BI
- Business income coverage extensions
- Recent case law developments (scope of loss, exclusions, etc.)
Pre-loss Disaster Planning
Business Income Losses Stemming From Environmental Events
Calculating Business Income Losses
- Coverage considerations:
- Actual v. theoretical period of indemnity
- Complete v. partial suspension of operations
- Number of occurrences
- Causation / multiple perils / idle periods
- ACV v. replacement cost and betterments
- Not rebuilding or rebuilding in a different location
- Exclusions, deductibles, sublimits, co-insurance, and endorsements
- Quantum considerations:
- Claim phases
- Policyholder objectives
- Top quantum “detours” and how to avoid them:
  - Sales projections
  - Changes in market conditions
  - Planned changes in the insured’s business model
  - Non-covered factors contributing to loss
  - Make-up production
6. Ways to Lose Coverage without Really Trying
Best Practices to Avoid Claim Detours
- Protecting the attorney-client privileg
- Internal and external communications regarding the loss
- Claims preparation
- Communicating with the insurers
- Proofs of loss
- Examinations under oath and other policy conditions
- Board considerations