Came across this story and although it is long (12 pages but they’re short) it gives a great insight into Insurance and Business Interruption. http://www.adjustersinternational.com/AdjustingToday/ATfullinfo.cfm?start=1&page_no=1&pdfID=40
Editors note on story: While working through a business interruption insurance claim, the policyholder and the insurer need to reach an agreement on a number of variables — none more worthy of discussion than the question of “How long does a business suffer the consequences after a disaster strikes?”
In this issue of Adjusting Today, author Gary Thompson brings into focus the elements that will help determine which route to take toward recovery of business interruption losses.
Drawing on nearly a century of case law, Mr. Thompson compiles for policyholders the rules of the road when establishing their period of interruption, moving from “theory” to reality.
Our goal for this issue is to provide a better understanding as to what course to take when the business interruption period is developed.
Sheila E. Salvatore
This is something I enjoy when the closing statement is this:
“The lesson for insurers is this: adjust the claim promptly and diligently, immediately respond to all requests for approvals to do certain work or hire certain contractors, and promptly issue sufficient advances for repairs to commence and continue. If an insurer does those things, it will have “clean hands” and be in a much better position to identify where the policyholder has delayed. All too commonly, insurers blame policyholders for delays caused by the insurer. This leads to frustration too often felt by companies attempting to recover insurance in the wake of a disaster — when its own insurer adds injury on top of injury. “
What does that mean in terms of securing rental equipment – first customers have to know rental equipment is available as business recovery tools to aide in shortening the time of the your Business Interruption. That is what we are trying to do with these blogs show you that equipment exists and how to use it in conjunction with your Business Interruption Insurance or as a Business Interruption policy itself. Bottom-line the longer the business is down the more money it loses in sales, work output, brand damage etc, etc and no amount of insurance money can get you back to exactly the place you were before the business interruption.
Second on my list here is an old saying from the garment center “your first loss is your best loss”. When something fails like in this case what do you? Do you throw out lierally 1,400 kegs of beer or do you call your insurance company to tell them “hey equipment failed, beer is going to spoil, the business will shut down, I’m getting rental equipment to keep the place going, get an adjuster here ASAP and let go through the Business Interruption policy now” – that’s what you do!
You do what you have to to keep the business going, you take a loss up front, spend the money to keep your company and brand going and you get your insurance involved the minute it happens. People sometimes think “it can fixed, we’ll only be out a day or two at most” I say maybe? Sometimes that is true, but if it was always the case companies like us would not exist, there would be no business – LOL