The 4 Keys To Minimizing Business Interruption

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The plight of Business Interruption manifests in many forms; flood, fire, wind, and hail damage plague claims departments at the most inopportune times.Todd Logue is a property general adjuster with over two decades of experience at GuideOne Insurance. We sat down with Todd to highlight the best measures an insurance carrier can take to curtail Business Interruption.

Key #1: Risk Management – Prior to a loss occurring it is important that carriers work with the insured to be sure they have an emergency plan in place to continue operations in the event of a catastrophe.  Two main items that an insured will want to have in place is off site back up of all critical documents including the financials and if possible a location where they can at least partially reopen the operation.

Key #2:  Seasoned Experts – An experienced forensic accountant will be able to review the financials and be certain that the loss is not over or understated.  A good engineer and building consultant/contractor can get the damages documented and the repairs started as soon as practical.  An Origin and Cause expert will be needed to determine the cause of the loss and quickly identify any potential subrogation and document any red flags that might indicate fraud.  Quick and accurate information is vital to moving the process forward.

Key #3: Communication – This is important in every situation, but when trying to control a business income loss it is crucial.  The adjuster must be certain the insured knows what is expected from them.  This same high level of communication will be needed with all experts and others working on the claim.  Keeping all parties on the same page and setting expectations and timelines for them is the key to success.

Key #4: Follow Up – You can’t expect what you don’t inspect.   Once expectations and timelines are communicated and the insured and the experts are working on their tasks it is important to follow up with all parties.  The adjuster needs to continue to be sure that everyone involved is on schedule and they have what they need to complete their various tasks.  If there is no follow up oftentimes the expectations are not met which leads to delays.  Good communication and follow up is critical to a faster recovery, which minimizes the Business Interruption claim.