Tag Archives: Business Income
Carrier’s Reliance on CPA’s Report to Support Business Income Loss Calculation is Not Sufficient to Defeat Bad-Faith Allegation – Understanding Business Interruption Claims
A federal court in California recently denied AMCO’s request to enter judgment in its favor and dismiss a policyholder’s allegations of bad-faith in the handling of a business income loss claim. In A-1 Transmission Automotive Technology, In…
Red River Waterway’s 15-day Closure Caused Millions of Dollars in Losses – Understanding Business Interruption Claims
Traversing over 225 miles, the Red River Waterway has become a strategic cargo and customs hub for the South. It is linked to the Mississippi River and Gulf Intracoastal Waterway and it also sits amidst a Louisiana Highway system, major interstate high…
Ordinary Payroll Coverage Can Be Extraordinarily Tricky- Understanding Business Interruption Claims
When measuring a business income loss, a company can treat all payroll and benefits (if directly related to payroll, i.e., FICA, worker’s compensation, etc.) as “continuing expenses” in its accounting worksheet as defined in CP 00 30 …
Will Your Business Be Covered When It Needs it The Most? – Understanding Business Interruption Claims
Last month, in Service One Cable T.V., Inc. v. Scottsdale Ins. Co., 2011-1469 (La. App. 1st Cir. February 10, 2012), the Louisiana First Circuit Court of Appeals decided that a cable service company did not have coverage under its commercial property d…
A Florida Niche Manufacturing Plant Loses Power – Understanding Business Interruption Claims
Buckeye Technologies Inc., is a leading manufacturer and marketer of specialty fibers and nonwoven materials. Its goods are sold worldwide to makers of consumer and industrial goods. The publicly traded company is headquartered in Memphis, Tennessee, a…
Measuring a Business Income Loss Is Not Weird Science – Understanding Business Interruption Claims
“If the facts don’t fit the theory, change the facts” – Albert Einstein
Unlike physicists and philosophers, lawyers, adjusters and accountants don’t have the luxury of changing hard facts when measuring, evaluating and adj…
I think I have a Business Interruption Claim, Now What? – Understanding Business Interruption Claims
I attended the 13th Annual Windstorm Insurance Conference® in Orlando last week. Windstorm is one of those rare meetings that bring all types of industry professionals together (regardless of affiliation) to engage in professional debates about the…
New Zealand’s Quake Approaches its One Year Anniversary – Understanding Business Interruption Claims
February 22, 2012, will mark the one-year anniversary of the 6.3 magnitude earthquake that destroyed thousands of homes and businesses in Canterbury, New Zealand. The one-year anniversary mark is important because most business interruption policies ha…
Unit Owner’s Loss of Rent Not Covered Under Association’s Policy in Washington State – Understanding Business Interruption Claims
In Elkins v. QBE Insurance Corporation, No. C11-5150, US District Court (W.D. Washington), Mr. and Mrs. Elkins filed suit against their condominium association’s insurance carriers for loss of rental income after a fire damaged common areas and i…
The Proof Is Not Always In the Numbers – Understanding Business Interruption Claims
Many insurance company adjusters deny, disclaim or reduce the amount of a business interruption claim, stating that amount of the loss is speculative or has not been “adequately” supported. A conjured or baseless claim should never be cover…
