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Business Interruption Assistance

Business interruption insurance can provide much-needed relief when disaster strikes, but filing a claim requires detailed analysis and documentation. The process can be daunting and time-consuming to business owners and executives when they are primarily focused on the economic recovery initiatives of their business.

GA Group is well-positioned to assist with this process during challenging times such as these.

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What Does Business Interruption Insurance Cover?

Most business interruption policies require the insured to file a detailed "proof of loss" within a short period after a loss occurs. Before one estimates the loss, it's critical to review the scope of coverage. Policies typically reimburse the insured for lost business income [profits] during the loss period, but coverages will vary.

Though some policies exclude business interruption claims due to a virus or disease, a forced closure due to a civil order is often a covered event. It is important to review the policy to understand the coverage. If you would like some assistance with this review, GA is happy to help.

How Are Losses Calculated?

Once the scope of coverage is determined, it's time to prepare a comprehensive, but reasonable claim. One of the biggest challenges in filing a claim is establishing the insured's "lost business income."

Past Performance

Carriers tend to focus on a company's track record to project what its revenues would have been absent the interruption. It is extremely important to be able to point to industry trends, market changes, or company-specific developments that support the expected revenue growth going forward.

Continuing Costs

Determining recurring and non-recurring costs is also a critical issue. Most business interruption policies compensate the insured only for the former. In other words, to calculate lost profits, continuing costs are recoverable because they are incurred despite the business interruption. Non-continuing costs, such as marketing and promotional expenses that are avoided during the interruption period, are not recoverable.

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Timing Is Essential

Damaged businesses need to recover their losses quickly. The claims process can take an excruciating amount of time and the sooner a business files a claim, the sooner they receive the insurance proceeds. In addition to acting quickly, the best way to hasten the process is to file a claim that is persuasive and well documented.

GA has a proven record of providing financial advisory solutions that are unique to every company. Our comprehensive process allows you to take full advantage of the protections available to counteract the negative effects on your business.