Although the documentation needed to support a business interruption/extra expense claim varies by industry and business, we prepared general guidance to assist you in tracking and assembling relevant information. Whether you have insurance coverage or not it is important to document your loss in real time. When the crisis subsides and insureds are trying to gather documentation to submit a claim, those that have prepared in advance will have their claims reviewed first.
5 Considerations to Help Prepare for a Potential Business Interruption and Extra Expense Claim
1. Prepare a timeline
2. Track and document key business metrics (varies by industry)
3. Track and document expenses that are related to the event (these may be new expenses or increased expenses as a result of the event)
4. Track specific event related business activity, i.e. cancellations, customer complaints, returns
5. Compile a three year look back of financial data including but not limited to:
This outline is not meant to be limiting nor all-inclusive in nature.
We recommend maintaining this data via separate ledgers and/or accounts.
At Conner Strong & Buckelew, we have prepared for unforeseen events that lead to extraordinary claims activity. This is why we have invested so heavily in claim consulting support, loss control and safety consulting, and most recently, a dedicated Forensic Accounting Practice. Our team is available to discuss any specific questions you may have.
Please visit our COVID-19 Resource Center for more information
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