Risk & Business Magazine JGS Insurance - Summer 2020 - Page 29

BUSINESS INTERRUPTION • Providing the insurance company with a notice of a direct physical loss. This notice should include a description of the property involved. Businesses should also notify their insurance broker as soon as reasonably possible. After giving notice of a loss, insurance companies will typically require businesses to provide a description of the loss, including how, when and where it occurred. • Taking all reasonable steps to protect the covered property from further damage. Businesses should document all expenses they incur in their efforts to protect covered property from further damage. • Permitting the insurance company to inspect the damaged property and any relevant records to prove the loss. Additionally, businesses will typically be asked to provide a signed and sworn proof of loss containing information requested by the insurance company. • Cooperating with the insurance company during the investigation of the loss and the settlement of the claim. • Resuming operations as soon as possible to limit losses. PREPARING FOR AND RESPONDING TO A CLAIM Business interruption claims can occur without warning, and it’s important to be prepared should a loss occur. To help ensure claims are resolved quickly and favorably, consider the following best practices: • Gather information and be prepared to provide proof of your business income and expenses for a period of at least one to two years before the loss occurred. Specifically, key information to have on hand when submitting a claim includes the following: • Financial statements for the last two calendar years before the loss occurred • Payroll records • Your hours of operation • Variable costs that have the potential to be reduced or stopped during the business interruption • Daily or monthly revenue and sales records for the last two accounting years • Your pre-loss income • Details regarding relevant contracts, including property and equipment leases, and customer and vendor agreements • Records regarding any continuing expenses your business is responsible for during the disruption • Sales and production summaries • Financial projections made prior to the loss • Inventory records • Expense records • Read your policy carefully, and ensure you understand how insurers will calculate lost income. • Gather data following the loss. Avoid throwing any affected property away, and take photos and videos of damages. • Maintain records of sales and operating expenses following a loss. Be sure to track lost revenue and additional expenses incurred as a result of the disruption. • Act to minimize losses. This could include moving to a temporary location or outsourcing portions of your business. • Retain copies of all communications with your insurance company throughout the claims process. Some businesses communicate with insurance companies through independent insurance adjusters or attorneys. These professionals can also provide guidance on how to maximize your recovery efforts following a loss. ADDITIONAL PROTECTION Business interruption insurance is designed to give businesses access to the protection they need when they need it most. However, these policies can be complex, and it’s important to work with your insurance broker closely when seeking coverage or filing a claim. To learn more, contact JGS Insurance today. + BY: GWENYTH P. LUU, CLCS DIRECTOR - COMMERCIAL LINES JGS INSURANCE Gwenyth Luu helps organizations improve their bottom line and lower their total cost of risk by implementing the JGS Proactive Service Platform. The JGS Proactive Service Platform is an inclusive strategy that focuses on primary cost drivers of a risk management program. Gwenyth helps businesses understand all of their potential and actual costs and liabilities, execute an actionable strategy, and deliver superior client service and support. The JGS Proactive Service Platform is driven by continuous strategy and service delivered on a daily basis throughout the year. The service platform includes risk control strategies, claims advocacy and management, contract reviews and insurance program design reviews. 29