Introduction to Inspection for BI:
Don’t get caught in front of the rolling stone!
Arriving, on time, at the destination marked with an ‘X’ on the map included in the courier packet for the ‘very special assignment’, Our Hero (that’s you), fedora suavely tilted and measuring tape ready to be un-holstered, surveys the devastation in the marketplace.
You (Our Hero) hand the head honcho your card (with aplomb, of course), then proceed to inspect the site.
Camera clicks fill the air, making a historical record of the front and the back of the risk. You grab your trusty ladder and climb onto the roof, camera again clicking away. Following the head honcho around you (for the last time - Our Hero) take the rubber band off an overstuffed and well-worn notebook, whip out your trusty pencil and start jotting down notes and measurements (okay, so you type it into your phone – go with me on this). You dig up answers to questions about age of equipment, replacement opportunities, and ordering time for new trinkets and treasures to fill restock the marketplace.
You, of course, make no commitment for coverage.
All your digging done, with tape measure re-holstered and notebook safely tucked in your belt, you prepare to depart. But wait! Something is amiss. This is a commercial loss. There was nothing in the assignment packet that indicated any loss of commerce. But what if there is no coverage?
DOESN’T MATTER! Our heroes (that’s YOU’all), should always inspect commercial risks with consideration for BUSINESS INCOME LOSS, whether the risk is covered or not, or whether the insured has made a claim for loss of income or not.
In this series, we will explore some of the simple steps to assuring the successful inspection of commercial risks that will be an invaluable service to Provencher clients and your Provencher Business Interruption Unit.
Our Business Interruption Unit (BIU) will handle all the heavy lifting after your initial inspection, such as:
•BI/LOI interview with insured to assist in document request and adjustment
•Provide insured with educational material about their coverage and instructional material about the process
•Maintain the physical and electronic files
•Maintain consistent contact with the insured and the client
•Request, collect, identify, process and qualify financial documentation from the insured, including qualification of Extra Expense
•Perform the financial analysis
•Adjust and determine the loss
•Report to the client
•Review analyses and determination with the insured, providing basis and instruction on interpretation of schedules
•Provide support for appraisal and litigation
But, there are a few items that only our stalwart and heroic adjusters can determine and are responsible for:
•You must assess and document the ‘Covered’ Cause(s) of Loss
•You must establish the Period of Restoration (POR) and provide the basis by elements.
•You must differentiate between POR and POS (Period of Suspension)
•You are the first line of defense in the Control of Extra Expense
(you must click to advance after the first slide)
Raiders of the Lost Profit Series:
Introduction: Introduction to Inspection for BI
Part One: The Secrets of Daily Loss Inspection
Part Two: Adventures in CAT Inspections
Part Three: Search for the Grail:Covered Cause of Loss vs. Actual Cause of Loss
Part Four: Pit of Snakes: Establishing Period of Restoration
Part Five: Reporting to HQ: Here’s What We Know So Far
Written & Contributed by: