The key to accurately evaluating a loss claim is the ability to obtain complete financial information regarding the claimant/insured’s occupation or business. The mutual goals of the insured and the insurer are to mitigate loss, return to normal operations as quickly as possible and resolve the claim in a reasonable period of time. All this should be done while maintaining positive professional relationships with all who are involved.

In business interruption claims analyses, the question is not what the enterprise earned but how much it would have earned had the insured event not occurred. Clearly, there is no one correct answer to such a question but rather a varying degree of plausibility among competing theories. The accountant must go beyond historical company data to tap additional industry and general information.

Whether it’s damage calculations or determining economic losses from business interruptions related to water, flood, wind, fire, hurricanes, tornadoes or any other kind of natural catastrophe, accurately projecting the profits that would have been earned outside a particular insured event requires an understanding of both the insured’s financial reporting and managing of its affairs before and after the loss.

The Ericksen Krentel team’s experience reviewing claims involving a variety of industries affords us the skills and depth of experience to provide you with a realistic and effective valuation of a business interruptions claim. That includes helping to obtain documents to support or refute a claim, reviewing the relevant documentation to form an initial assessment of the case and identify areas of loss.

In addition to understanding the principle governing business interruption insurance claims, there are other concepts with which our experienced accountants are familiar with, such as coinsurance valuations, reporting forms, blanket coverage and contingent coverage.

We are available on a moment’s notice to assist in situations involving business interruption, helping adjusters and insurance representatives with:

• Determining the period over which the damage is suffered
• Analysis of insurance adjusters’ loss calculations
• Analysis of costs to be used in calculating the loss
• Lost profits pro-formas and projections
• Evaluation of insurance coverage to determine amount of recoverable loss
• Analysis of opposing experts’ reports and testimony
• Expert witness services

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