Raiders of the Lost Profits - Part Five: Reporting to HQ

Dispatch: This is what we know so far…

Scenario 1:

• The structure suffered minimal damage from the storm in the form of wind driven rain through openings in the door
• The proprietor shut down the market for a period of eight days due to water damage and lack of customers due to the area wide evacuation requested by the mayor forty eight hours before the storm made landfall
• I observed no physical damage in the area around the market that would prevent ingress or egress to the building or prohibit access to the business
• The market was without power for five days – power supplier information and billing information has been requested to determine if the power failure was from a peril covered under the policy.

Scenario 2:

• Heavy winds damaged the roof over the leased market space causing water intrusion and damage to the covered business personal property
• Although our client does not insure the leased space or the roof, the damage to same was from wind which is a covered peril under the insurance policy
• I have spoken with the landlord’s contractor and found that the estimated repair time for the roof and interior structural damage is three months
• After adjustment time is factored in, the replacement of the BPP should reasonably take thirty days

Note that in both scenarios, cause of loss (covered or not) and periods of either suspension or restoration are addressed even if not completely resolved.

Determining coverage for Business Interruption can be a tricky road to navigate. Reporting all the known facts and observations at the time of inspection will assist in the triage process and will help to confirm whether coverage exists or not, applicable limits, restrictions, exclusions, deductibles, and most important: actuation of coverage (or lack thereof). The Report Writing guidelines in your adjuster on-boarding package will provide a more detailed outline of the information required when making your first report so you can complete your mission and move on to your primary mission – completing the damage estimate.

And, as always, the Business Interruption office at Provencher HQ is just a phone call away! If we don’t know the answer immediately, we’ll find it for you!

******

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