Small business owners and executives would be smart to obtain business interruption insurance, and possibly contingent business income. The idea is that the policy will compensate the company for lost earnings if a devastating event forces it to temporarily stop operating.
However, the calculations and details of business interruption coverage is quite complicated and mounds of paperwork are often required to support a claim. Unfortunately, most policies don’t specify exactly what support documents are required and claims are commonly denied.
The insurer may have a staff of specialists auditing your claim, if the scope of the business’ loss is large enough. With that in mind, your company, too, should consult with Filler & Associates, who is experienced in these types of claims. The cost of hiring an accountant may be covered by the policy.
Filler & Associates would be the primary contact with the insurer, dealing with the typical onslaught of requests for documentation. That leaves you as the business owner free to get on with operating the company and bringing it back up to speed. Filler & Associates will also keep the insurer informed on what actions you are taking, and helping to keep the claims process moving. Often, we already have had dealings with the insurer and are familiar with the claims department and what it will expect from your business.
More specifically, as your accountant, Filler & Associates can:
Help you maximize your claim. Accountants know what is reasonable and how to negotiate with the insurance company’s adjusters and accountants.
Assemble and review your company’s documentation. Calculating the amount of the loss is one of the most complex issues in making these claims.
Insure that you have all the financial records required by the insurer. These might include receipts, utility bills and vendor information. The insurer will want to know the income your business was generating before and after the loss. Your accountant can analyze, identify and segregate revenues, costs and expenses, as well as make sure profit projections are accurate and solid enough in case of a dispute.
Depending upon the size of your company, various departments might be affected differently from the interruption. Filler & Associates can determine whether your claim should include statements from department heads citing specifically how their operations were hurt.
Show how losses were minimized. Your company will be required to detail the actions it took to mitigate losses during the business interruption period. The interruption period is critical and one of the determining factors the insurer will use when examining the total amount of your company’s claim.
Prepare the loss analysis and actual claim. The analysis should comply with the language in the policy and the claim should be organized in a way that anticipates potential disputes and even litigation if your company and its insurer cannot reach an out-of-court settlement. Preparation will help keep litigation costs, if any, down.
For more information about business interruption claim, schedule a consultation with Filler & Associates.