Following a commercial property loss, insureds, brokers, and even carriers may become confused about the extent to which business interruption (BI) coverage applies to the loss.
After reviewing specific policy language, an insurer may enlist the services of a forensic accountant, who would then examine all associated expenses filed by the insured. The accountant will review P&Ls, invoices and various other documents to accurately calculate the BI loss.
It is important to note that with a large commercial claim, for example, the insured may be filing for building loss, contents loss, and for extra expenses, in addition to BI.
With any combination of these types of claims—building, contents, BI, extra expense—the accountant may encounter instances where the exact same dollar amounts for the exact same expenses are claimed in two or more coverage areas. What might this imply?
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