Business Interrupted. Understanding How Business Interruption is Measured and Coverage is Applied
|
|
- Valentine Randall
- 7 years ago
- Views:
Transcription
1 Business Interrupted Understanding How Business Interruption is Measured and Coverage is Applied January 2014 Lockton Companies Business Interruption (BI) insurance has often been seen by risk managers as a smoke and mirrors portion of an insurance contract. Terms such as necessary suspension of operations, period of restoration, continuing normal operations incurred, and extra expenses have companies with a business loss looking for their broker, forensic accountant, or even public adjuster to assist them in preparing the documents to quantify the loss. SHERI WILSON Senior Vice President National Property Claims swilson@lockton.com As the landscape for policy language is vast and dynamic, this paper will focus on the Lockton form language for a BI loss. The Lockton policy form defines Business Interruption as: Loss due to necessary interruption of business conducted by the Insured, including all interdependencies between or among companies owned or operated by the insured resulting from loss of damage insured herein and occurring during the term of this policy to real and/or personal property described. Such loss shall be adjusted on the basis of actual loss sustained by the insured, consisting of the net profit which is prevented from being earned including ordinary payroll; and all charges and other expenses (including soft costs) to the extent that these must necessarily continue during the interruption of business, but only to the extent to which such charges and expenses would have been incurred had no loss occurred. WHAT THIS MEANS Business interruption occurs when an insured suffers a loss or damage to physical property (real and/or personal) by a covered cause of loss, and a loss of earnings or suspension of operations ensues. L O C K T O N C O M P A N I E S
2 First-party policies can have a variety of ways to The Business Interruption policy is a first-party property policy, which has the following components: Policy Declarations Contains a description of the insured s business and provides the outline for the contract. Limits of Insurance Defines the corners of the contract and each party s risk. Coverages Defines real and personal property as well as your business interruption. Conditions, Exclusions, and Definitions Used to develop a story about the risk and place guidelines on the policy response to loss. define the business loss that companies may suffer. First-party policies can have a variety of ways to define the business loss that companies may suffer. There are business interruption forms, gross earnings forms, gross profits forms, and extra expense forms to name the four primary types. Each form in its development was aimed at capturing the story of the business loss that might happen if an insured experienced a loss of property. Each of these time-element exposures are distinct and have unique characteristics taken into account when a loss occurs. Here we focus on the business interruption form and its practical and basic application. BI occurs when an insured suffers loss or damage to physical property (real or personal) by a covered cause of loss, and a loss of earnings or suspension of operations ensues. For example, a fire damages an insured s building and equipment, and the business is suspended for six months. 2
3 January 2014 Lockton Companies STEPS FOR BUSINESS INTERRUPTION INSURANCE Example: A fire damages an insured s building and equipment and the business is suspended for six months. 1 Review the insurance policy for covered causes. A logical first it to look at the insurance policy and note that fire is an insured peril and, thus, coverage under this policy has been triggered by direct damage resulting from a covered cause of loss. While a fire loss might seem intuitive covered keep in mind that the policy has to be triggered by a covered peril in order to allow the policyholder to recover any loss of income. 2 Confirm the potential for makeup is included in the policy. In our example, we stated that a suspension of operation resulted from the fire. We have to assume that the insured was losing not only gross revenue but profits from net income and fixed costs that cannot be recovered. Consideration must also be given during this six-month reported suspension that the business cannot make up the lost business by using any other means and methods. The potential for makeup is viewed as an obligation of the insured under the Conditions of the policy and forms part of the basis for the contract. To keep it simple, let s assume that the business suffering the fire does not have potential for makeup of lost income and, therefore, we need to measure a BI loss. 3
4 Many insured believe that BI is the loss of gross revenues, but for the purposes of insurance, BI is defined as the loss of profit and fixed charges that continue. 3 Determine the period of restoration. Our next element to consider is the Period of Restoration. Loosely defined, this is the time in which the damage to real and personal property can be repaired or replaced and/or the insured s business is restored. What makes the BI measurement unique is that rarely does a business suffer a loss of real and/or personal property that when restored, the business immediately returns to preloss revenues. Many variables come in to play when measurement of the BI loss actually occurs. 4 Measure the business interruption loss. Determine the Revenue Stream We want to measure the BI loss that the business suffers, so, we will look at a relative, representative period of time and see what revenues the business was producing. If there is no seasonality in the revenue stream and we have a consistent monthly earning income stream, it may only be necessary to look at a representative six months. But in most cases, we would likely want to look at least 12 months, and perhaps 18 months, to develop a monthly value for the BI loss. Determine the Loss Profit As the BI loss is the loss of profit and fixed costs that necessarily continue during the period of interruption, we also would look at the Profit and Loss Statements (P&Ls) and identify the profit and operating cost components for the business. Many insureds believe that BI is the loss of gross revenues, but for the purposes of insurance, BI is defined as 4
5 January 2014 Lockton Companies the loss of profit and fixed charges that continue. It makes perfect sense if you think about it in a practical way. When the business operations are closed, the variable cost components of the operation discontinue, e.g., raw materials used in production are not used, and therefore raw material costs are suspended. As the insured is not incurring or paying those variable costs, the insurance company does not want to reimburse the variable costs. In our example, our 18-month analysis of P&Ls will show that the company had an 18 percent profit margin. So for purpose of our BI measurement, we will use this 18 percent as our profit component. Measure the Fixed Cost, Continued and Incurred Next, we turn our attention to measuring the fixed costs that continue and are incurred. Both continuing costs and incurred costs are needed for calculating recovery. Insurers want to reimburse insureds for costs they suffer during the period of interruption. Looking back at P&L s for the 18-month period we previously chose, begin to look at all expenses and decide if they are fixed (continuing) or are variable (discontinued). We want to be consistent in the approach and select the same period of time for the profit component and the fixed cost component of our claim. We may need further financial information to determine the fixed costs, as the P&L can have larger categories of expense items that aggregate expenses. Depending on the complexities of the business, insureds should not be surprised if the insurance company requests additional financial documents to demonstrate whether a cost is variable or fixed. For our purpose, let s assume that all the information we need for fixed cost definition is contained in the P&L and we determine that fixed costs make up 25 percent of the costs incurred. Put It All Together Putting it all together, we estimate the revenue stream that was lost or impacted by the event. Taking this monthly revenue stream, multiply the profit and fixed components to identify the gross BI loss. Example 1: Monthly Revenue is $250,000 Loss of revenue for 6 months = $1,500,000 Loss of profit (0.18 x $1,500,000) = $270,000 Fixed costs (0.25 x $1,500,000) = $375,000 Gross BI Loss $270,000 + $375,000 = $645,000 5
6 5 Apply policy deductible. The final is a review of the policy to determine the applicable BI deductible. This deductible can be a dollar amount or a time-period deductible. To keep it simple, let s say we have a $250,000 BI deductible. The net BI recovery under our loss scenario is $645,000 $250,000 or $395,000. Example 2: Monthly Revenue is $250,000 Loss of revenue for 6 months = $1,500,000 Loss of profit (0.18 x $1,500,000) = $270,000 The first thing you may notice is that the insured has suffered a loss of gross revenue of $1,500,000 and will recover only $395,000 from insurers. Recall earlier statements that gross revenue is not insured. Variable costs are not incurred and, therefore, not recoverable. In our example, fixed costs of 25 percent of revenue and profit of 18 percent of revenue are recoverable. This revenue stream is, therefore, insured at 43 percent. Fixed costs (0.25 x $1,500,000) = $375,000 Gross BI Loss $270,000 + $375,000 = $645,000 Less Deductible - $250,000 Net BI Loss Recoverable = $395,000 6
7 January 2014 Lockton Companies We have not attempted to touch on a limitless number of other circumstances but have kept this straightforward and succinct. The insured can have seasonality, net losses, and inventories to make up loss, other avenues to make up loss of revenue using other facilities and resources, additional expenses, and extreme variability in the gross revenue stream. Measuring the BI loss a company can suffer is an art, not a science. All aspects of the insured s business, variables, anomalies not related to the loss, timing of the loss period, and many others have to be considered to develop a BI value that is recoverable. Reach out to Lockton property claims advocates for assistance as soon after the loss as possible. Lockton can assist in getting the right resources to bear on the measurement and recovery of your BI loss. 7
8 Our Mission To be the worldwide value and service leader in insurance brokerage, employee benefits, and risk management Our Goal To be the best place to do business and to work Lockton, Inc. All rights reserved. Images 2014 Thinkstock. All rights reserved. g\white paper\wilson, sheri\wilsonsheri_businessinterruption_jan14.indd
GETTING (BACK TO) BUSINESS INTERRUPTION INSURANCE. Section 1: Lost property and lost earnings are treated separately
GETTING (BACK TO) BUSINESS INTERRUPTION INSURANCE Section 1: Lost property and lost earnings are treated separately Business interruption insurance (also known as business income protection, profit protection,
More informationBDO Consulting. Insurance Claim Services. Logo
BDO Consulting Insurance Claim Services Business interruption and property damage claim preparation is our core business exclusively servicing policyholders. We utilize a comprehensive and detailed approach
More informationPUTTING OUT THE FIRE Preparing Successful Property and Business Interruption Insurance Claims. Presented by Chris Brophy and Tony Moraes
PUTTING OUT THE FIRE Preparing Successful Property and Business Interruption Insurance Claims Presented by Chris Brophy and Tony Moraes February 5, 2015 Presenters Chris Brophy New York / 212.651.7180
More informationStep 1. Step 2 REVIEW YOUR POLICY PROMPT NOTICE TO INSURANCE CARRIER
business income insurance checklist Each year, many organizations suffer a temporary interruption of their business operations due to the damage and destruction caused by hurricanes and other causes of
More informationFrequently Asked Questions (Including Definitions)
My Business Income Consultation from Chubb Frequently Asked Questions (Including Definitions) Frequently Asked Questions How To Use The Tool Click on the question that you would like to have answered.
More informationHurricane Preparation and Response Insurance & Risk Management AAPA
Hurricane Preparation and Response Insurance & Risk Management December 6-7, 2012 AAPA Miami, Florida Risk Management Pre Loss Planning What to do before a loss: Identification of insurance policies that
More informationBUSINESS INTERRUPTION: DEDUCTIBLES & SUB-LIMITS. Joe Aldous RGL Forensics Andrew Schütte Hill Dickinson Jason Reeves Zelle Hofmann
BUSINESS INTERRUPTION: DEDUCTIBLES & SUB-LIMITS Joe Aldous RGL Forensics Andrew Schütte Hill Dickinson Jason Reeves Zelle Hofmann Deductibles? Sub-limits? Deductibles for BI vs Deductibles for PD temporal
More informationBusiness Interruption Insurance. Module 1: The Basics of BI
Module 1: Introduction Business Interruption ( BI ) insurance and claims are built on a few basic principles and if these are well understood the mystery of the subject is resolved. This article is the
More informationKey Issues in Loss Mitigation - Catastrophic Events / Commercial Property Insurance
Key Issues in Loss Mitigation - Catastrophic Events / Commercial Property Insurance Area Business Disaster Recovery Symposium Myrtle Beach Convention Center January 31, 2014 James W. Errico 1 Brief Bio
More informationEnsuring Proper Protection of Your Company s Assets and Exposures
Ensuring Proper Protection of Your Company s Assets and Exposures Know the Worth of Your Assets The development of accurate insurable values is an excellent way to verify the physical worth of your assets
More informationJames W. Errico, CPA, CFF, CGMA Director, Lead Consultant Aon Global Risk Consulting January 30, 2015
Business Interruption Insurance James W. Errico, CPA, CFF, CGMA Director, Lead Consultant Aon Global Risk Consulting January 30, 2015 Goals of Today s Session Following Today s Session You Will Be Able
More informationChubb Group of Insurance Companies
Chubb Group of Insurance Companies Business Income, Extra Expense and Research and Development Income Worksheet For Ongoing-Business with/without R&D Activities This worksheet will help you determine the
More informationPROTECTING BUSINESS INCOME: CONTINGENT BUSINESS INTERRUPTION INSURANCE AND THE EVOLUTION OF TIME ELEMENT COVERAGES. August 2012.
PROTECTING BUSINESS INCOME: CONTINGENT BUSINESS INTERRUPTION INSURANCE AND THE EVOLUTION OF TIME ELEMENT COVERAGES August 2012 PROTECTING BUSINESS INCOME: CONTINGENT BUSINESS INTERRUPTION INSURANCE AND
More informationOptimizing International Property Insurance Coverage
Companies with facilities outside the U.S. protect against the financial losses that can result from damage to those facilities through international property insurance programs. International property
More informationTHE INSURANCE POLICY: SIMPLIFIED!
THE INSURANCE POLICY: SIMPLIFIED! INSURANCE CONTRACT: COMMERCIAL PROPERTY AND BUSINESS INCOME The insurance policy is a contract and as such, is governed by its conditions, provisions, and exclusions.
More informationNonsubscription in Texas
Nonsubscription in Texas A True Alternative to Workers Compensation August 2014 Lockton Companies Originally published December 2010 Risk managers identify and manage potential risks, and take the appropriate
More informationBusiness Income Insurance Policy: End the Confusion
1740H Dell Range Blvd., #300 I Cheyenne, Wyoming 82009 PHONE: 307.433.8180 I FAX: 307.634.9497 EMAIL: info@bisimplified.com www.bisimplified.com ARTICLES: THE 411 Business Income Insurance Policy: End
More informationBusiness Interruption Insurance
So! You have suffered a financial loss, have you..? And you think it is covered by your Business Interruption insurance policy? This article introduces you to Business Interruption (BI) insurance and the
More informationClaims Services and Loss Management
Claims Services and Loss Management Contents Your Partner in Loss Management As a client, you have access to all the property loss prevention and risk management services Affiliated FM has to offer. With
More informationPROCEDURES FOR FILING MAJOR LOSS PROPERTY INSURANCE CLAIMS (revised eff. 5-1-14)
APPENDIX 4: PROCEDURES FOR FILING MAJOR LOSS PROPERTY INSURANCE CLAIMS (revised eff. 5-1-14) The Risk Management Office (RMO) will be the point of contact for any large property loss, or disaster, in order
More informationBusiness Income/Extra Expense Calculator
Business Income and Extra Expense Calculator Navigate throughout this workbook calculator tool by clicking on desired button below. Each module you enter has a button to bring you back to this main Menu
More informationBuilder s Risk Structuring the Right Coverage, Avoiding and Resolving Disputes
Builder s Risk Structuring the Right Coverage, Avoiding and Resolving Disputes American Bar Association (ABA) Section of Litigation Insurance Coverage Tucson, Arizona March 6, 2015 Builder s Risk Speakers
More informationMy Business Income Consultation from Chubb. Help Documents. User Guide. Frequently Asked Questions. Script
My Business Income Consultation from Chubb Help Documents Select one of the links below for additonal information: User Guide Frequently Asked Questions Script My Business Income Consultation from Chubb
More informationIntroduction to Business Interruption Insurance. Module 5: Increased Costs and Savings
Introduction to Module 5: Increased Costs and Savings Increase in Cost of Working There is an automatic provision for increased costs in the wording of the Insured Gross Profit item, which is highlighted
More informationBusiness Interruption Insurance Checklist
Many businesses suffered a complete or temporary interruption of their business operations due to the damage and destruction caused by Hurricane Katrina. The following checklist of basic procedures and
More informationRestaurants & Hospitality
TRADE NAME RESTORATION (TNR ) Business Interruption Coverage For Food Borne Illness Restaurants & Hospitality These Industries May Need More Than Just Traditional Coverages Policy Property General Liability
More informationCOMMERCIAL INSURANCE NEWS COINSURANCE: INSURANCE TO VALUE REVISITED
AN ESSENTIAL CONCEPT IN PROPERTY INSURANCE By Robert J. Prahl, CPCU The need to adequately insure property, whether it be commercial or personal, is one of the most fundamental concepts of insurance. Its
More informationTaking the Stress Out of Controlled Insurance Programs: Guidance for Subcontractors
Taking the Stress Out of Controlled Insurance Programs: Guidance for Subcontractors December 2012 Lockton Companies Before you bid on a construction contract, knowing your insurance obligations will help
More informationBUSINESS INCOME MADE SIMPLE
1 BUSINESS INCOME MADE SIMPLE Business Income (BI) insurance is the most complicated and misunderstood insurance product. As a result, seventy-five percent of businesses suffering major property damage
More informationWorkers Compensation: Practical Tips for Dealing With NCCI s Split Point Rating Change
Workers Compensation: Practical Tips for Dealing With NCCI s Split Point Rating Change November 2012 Lockton Companies A key factor in your workers compensation premium is your experience mod. The e-mod
More informationCOMMERCIAL PROPERTY INSURANCE COVERAGE AND CLAIM MEASUREMENT ISSUES SPECIFIC TO CATASTROPHIC EVENTS
COMMERCIAL PROPERTY INSURANCE COVERAGE AND CLAIM MEASUREMENT ISSUES SPECIFIC TO CATASTROPHIC EVENTS FEBRUARY 7, 2013 Raymond S. Hutnik, CPA, CFE, CFF, FCPA Marsh Risk Consulting Tracy Alan Saxe, Esq. Saxe
More informationFrequently Asked Questions About Property Damage Insurance Claims in Alabama
Roadmap to Recovery Program Frequently Asked Questions About Property Damage Insurance Claims in Alabama This publication offers general guidance and answers to common questions people ask after a loss
More informationBusiness Interruption (BI) Insurance Time to Reassess
Business Interruption (BI) Insurance Time to Reassess Over 90% of businesses that did not have business interruption insurance failed within two years Barry Woods, Commercial Underwriting Manager, QBE
More informationLender Relations After A Catastrophic Property Loss: Getting Your Mortgage Company To Release Insurance Proceeds
Lender Relations After A Catastrophic Property Loss: Getting Your Mortgage Company To Release Insurance Proceeds If you have a mortgage, and your home has suffered severe damage or been destroyed, some
More informationNetwork Security and Data Privacy Insurance for Physician Groups
Network Security and Data Privacy Insurance for Physician Groups February 2014 Lockton Companies While exposure to medical malpractice remains a principal risk MIKE EGAN, CPCU Senior Vice President Unit
More informationOVERVIEW OF BUSINESS INTERRUPTION INSURANCE
OVERVIEW OF BUSINESS INTERRUPTION INSURANCE ANDREW C.M. BOURNE, CPA, CMA, DIFA, CFF Partner, BDO Canada LLP - FINANCIAL ADVISORY SERVICES 2 March 2015 AGENDA Property Insurance vs. Business Interruption
More informationPrivate Health Insurance Exchanges:
Private Health Insurance Exchanges: Smoke, Substance or Something In Between April 2014 Lockton Companies OVE RVI E W MIKE SMITH Director Exchange Solutions 617.80.1540 mmsmith@lockton.com The term Health
More informationBusiness Income Without Extra Expense
Business Income Without Extra Expense Table of Contents Section Page No. Premises Coverages 3 Additional Coverages 5 Limits Of Insurance 10 Waiting Period 10 Loss Determination 10 Loss Payment Option 11
More informationBUSINESS INTERRUPTION Loss of Profits, Salaries and Fixed Expense Insurance S A M P L E
BUSINESS INTERRUPTION Loss of Profits, Salaries and Fixed Expense Insurance Perils Covered Loss of net profits, salaries and fixed expenses of the insured business arising out from the operation of buildings,
More informationCase 2:14-cv-06333-JS-ARL Document 1 Filed 10/28/14 Page 1 of 13 PageID #: 131. : : - against - : : : Defendant.
Case 214-cv-06333-JS-ARL Document 1 Filed 10/28/14 Page 1 of 13 PageID # 131 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ---------------------------------------------- x MONTAJ, INC., Plaintiff,
More informationPromotional Risk Management. Gaming, Entertainment & Sports Practice
Promotional Risk Management Gaming, Entertainment & Sports Practice Casinos, Card Clubs, Racetracks, Racinos, and Gaming Manufacturers PROMOTIONAL RISK MANAGEMENT Lockton s worldwide team of promotional
More informationBUSINESS INCOME REPORT/WORKSHEET
POLICY NUMBER: CAPITAL ASSETS PROGRAM (OUTPUT POLICY) OP 15 04 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS INCOME REPORT/WORKSHEET Name Location This worksheet must be
More informationEmployer Health Reform Survey Results
Employer Health Reform Survey Results June 2011 L O C K T O N C O M P A N I E S, L L C Figure 1 - Levels of Concern Regarding the Following Aspects of the Health Reform Law, Across All Industries Levels
More informationUnderstanding Financial Statements. For Your Business
Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,
More informationNumber: 200636085 Release Date: 9/8/2006 Internal Revenue Service. Department of the Treasury Washington, DC 20224. Index Number: 162.
Number: 200636085 Release Date: 9/8/2006 Internal Revenue Service Index Number: 162.04-03 ---------------------------- ------------------------------------------------- ---------------------------- -----------------------
More informationUS Homebuilder Industry
US Homebuilder Industry Demand in Heightened Quality and Lower Costs Empowers Strategic Risk Management Practices October 2015 Lockton Companies The homebuilder industry continues to surge ahead as housing
More informationEmployers Wary of Health Reform Costs and Hassles
Employers Wary of Health Reform Costs and Hassles Health Reform Financial Analysis Report Lockton Benefit Group Revised April 5, 2011 Shannon Demaree, ASA, MAAA Vice President Director of Actuarial Services
More informationCONTRACTOR DEFAULT & SURETY PERFORMANCE:
CONTRACTOR DEFAULT & SURETY PERFORMANCE: A PRACTICAL GUIDE FOR UNDERSTANDING AND NAVIGATING A BOND DEFAULT SITUATION TEXAS CITY ATTORNEYS ASSOCIATION SUMMER CONFERENCE JUNE 9-11, 2010 SOUTH PADRE ISLAND,
More informationBusiness Interruption Insurance what your should know right now
Business Interruption Insurance what your should know right now If a natural or man-made disaster interrupted your company's or client's business would it survive? What may have seemed like protection
More informationSBCA PROPERTY AND CASUALTY INSURANCE COVERAGE AUDIT
SBCA PROPERTY AND CASUALTY INSURANCE COVERAGE AUDIT L O C K T O N C O M P A N I E S DEAR SBCA MEMBER The SBCA is pleased to announce it has teamed up with Lockton Companies and AmTrust Insurance to create
More informationAnswers to your questions about coverage from Standard Insurance Company
Voluntary Short Term Disability Insurance CITY & COUNTY OF DENVER Answers to your questions about coverage from Standard Insurance Company STANDARD Voluntary INSURANCE Short Term COMPANY Disability Insurance
More informationAirmic review of the supply chain insurance market Review of recent developments in the supply chain insurance market
REPORT Airmic review of the supply chain insurance market Review of recent developments in the supply chain insurance market 1. Executive summary Increasingly complex supply chains, together with greater
More informationLONG TERM CARE INSURANCE IS NOT FOR THE ELDERLY!
LONG TERM CARE INSURANCE IS NOT FOR THE ELDERLY! What s that you say? Long Term Care insurance (LTCi) is NOT for the elderly?! Did you know that over 45% of all claims for Long Term Care are for people
More informationInsureIT FAQs Licensed by Data Insurance Licensing Ltd
Business related What is Data Insurance? It s a pre-approved; first party insurance policy for loss of business critical data and the financial impact of data loss. Data Insurance is licensed by Data Insurance
More informationDATA RECOVERY SOLUTIONS EXPERT DATA RECOVERY SOLUTIONS FOR ALL DATA LOSS SCENARIOS.
More information
Business Income With Extra Expense And Research And Development Income Coverage
Business Income With Extra Expense Table of Contents Section Page No. Premises Coverages 3 Additional Coverages 6 Limits Of Insurance 12 Waiting Period 12 Loss Determination 12 Duration Of Loss Research
More informationStock Throughput Policies How to make them work for you
Stock Throughput Policies How to make them work for you Virginia Cameron Joe Sheridan September, 2013 Marine Stock Throughput Policy The Best Kept Secret in Property Insurance http://link.delvenetworks.com/media/?mediaid=7c1862
More informationBUSINESS INCOME: THE ISSUE OF PAYROLL SPONSORED BY
BUSINESS INCOME: THE ISSUE OF PAYROLL SPONSORED BY BUSINESS INCOME: The Issue of Payroll Robin Federici, CPCU, AAI, ARM, AINS, AIS, CPIW PO BOX 781 NORTH KINGSTOWN, RI 02852 Phone: 401-294-3557 Fax: 401-294-3557
More informationRisk and Claims Management:
Risk and Claims Management: Mapping Your Key Business Issues December 2012 Lockton Companies One of the most productive tools that Lockton experts use when businesses face challenges in risk management
More informationSPECIAL REPORT INTRODUCTION
SPECIAL REPORT THE THREE DEADLY SINS OF PROPERTY INSURANCE: COINSURANCE, PROTECTIVE SAFEGUARDS & VACANCY PROVISIONS (01-13-09) This Special Report was written by Daniel P. Hale, J.D., CPCU, ARM, CRM, LIC,
More informationTen Tips to Securing Insurance Coverage for a Business Interruption
Ten Tips to Securing Insurance Coverage for a Business Interruption Lee M. Epstein Copyright 2013 Flaster/Greenberg PC (adapted from Fried & Epstein, LLP 1999 editorial) INTRODUCTION In the aftermath of
More informationInternational Accounting Standard 11 Construction Contracts
International Accounting Standard 11 Construction Contracts Objective The objective of this Standard is to prescribe the accounting treatment of revenue and costs associated with construction contracts.
More informationAbel Insurance Agency
After a wildfire, people may have questions about their insurance coverage. The Insurance Information Institute offers answers to some of these basic questions. HOMEOWNERS COVERAGE Q. If my house burns
More informationELECTRONIC COMMERCE (E-COMMERCE)
POLICY NUMBER: ELECTRONIC COMMERCE (E-COMMERCE) COMMERCIAL PROPERTY CP 04 30 06 07 This endorsement modifies insurance provided under the following: COMMERCIAL PROPERTY COVERAGE PART SCHEDULE Description
More informationPeace of mind that no earthquake can shake.
California Earthquake Authority Your Guide to Earthquake Insurance Peace of mind that no earthquake can shake. Policy information for owners of Homes and Mobilehomes. Five reasons to buy a CEA policy.
More informationPersonal Jewelry Insurance Policy
Personal Jewelry Insurance Policy Please read your entire policy carefully This is a jewelry repair or replacement policy Table of Contents Page Agreement.. 1 Definitions.. 2 Property Covered..2 Property
More informationInternet Banking Agreement and Disclosure
Internet Banking Agreement and Disclosure This Internet Banking Agreement and Disclosure ("the Agreement") explains the terms and conditions governing the basic Internet banking services and bill payment
More informationPlain Language Mortgage Documents CBA Commitment. Prepared by the Canadian Bankers Association
Plain Language Mortgage Documents CBA Commitment Prepared by the Canadian Bankers Association March 7, 2000 Our commitment: Plain Language Mortgage Documents Members of the Canadian Bankers Association
More informationHow to Prepare Your Business for an Emergency
/ business Small steps toward preparing your business for emergencies Step 4: Insurance THE GOAL: Make sure you have insurance that will enable you to get back into business after a disaster. Finding the
More informationPre-Existing Structures at the Site Project Duration Type of Structure Under Construction Any Other Entities with Interests in the Property
Speakers: Vice President, Global Risk Management & Insurance Starwood Hotels & Resorts Worldwide Senior Vice President - National Director National Property Claims - Strategic Outcomes Practice Willis
More informationCourse Agenda. Overview of specific claims types Business Income claims Employee theft/dishonesty claims Disability claims
Quick Tips on What Every Claims Handler Should Know by Cremers, Holtzbauer & Nearmyer, P.C. Course Agenda Tips on gathering information Historical information needed & how to analyze Determining reliability
More informationWhat is Risk Management?
Risk Management Workshop 1 What is Risk Management? It is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor,
More informationMount Vernon Fire Insurance Company. Antique Auto Program
I. AGE There is not a vehicle age requirement for an offer of coverage under this filing. II. POLICY TERM Policy term is for one (1) year. III. LIABILITY COVERAGES A. Compulsory Bodily Injury/Property
More informationGlossary of Common Homeowners Insurance Terms
Glossary of Common Homeowners Insurance Terms A Actual cash value (ACV) - The value of your property, based on the current cost to replace it minus depreciation. Also see replacement cost. Additional living
More informationConstruction Contracts
STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 11 Construction Contracts This version of SB-FRS 11 does not include amendments that are effective for annual periods beginning after 1 January 2015.
More informationPending Legislation Could Heighten Liability and Loss Associated With Mold
MOLD CLAIMS: A BASIC FRAMEWORK FOR FINDING COVERAGE UNDER COMMERCIAL PROPERTY AND GENERAL LIABILITY POLICIES, by Whitney E. Stein, Copyright 2001 Insurance Law Group, Inc. The presence of mold at toxic
More informationalternative collection
01 technical this article considers two methods a company could adopt in order to speed up the collection of cash from its customers. Additionally, worked examples show how these methods can be evaluated
More informationMarginal and. this chapter covers...
7 Marginal and absorption costing this chapter covers... This chapter focuses on the costing methods of marginal and absorption costing and compares the profit made by a business under each method. The
More informationUnderstanding the Variations in Long-term Care and Chronic Illness Riders
Understanding the Variations in Long-term Care and Chronic Illness Riders Shawn Britt, CLU, CLTC Director, Advanced Consulting Group Nationwide America is aging. The Baby Boomer generation - once our nation
More informationQuick Preview PROPERTY DAMAGE
Quick Preview PROPERTY DAMAGE You are you first priority, take care of you first Understand rental insurance, towing and storage costs Figure out what kind of insurance coverage you have Choose a reputable
More informationWorkers' Compensation Insurance Purchasing Guide
Workers' Compensation Insurance Purchasing Guide Introduction to the Workers' Compensation Insurance Buying Process What s inside: Trends Types Terms & Criteria Choosing a Provider Businesses that have
More informationFrequently Asked Questions About Property Damage Insurance Claims in Tennessee
Roadmap to Recovery Program Frequently Asked Questions About Property Damage Insurance Claims in Tennessee This Roadmap to Recovery publication offers general guidance and answers to common questions people
More informationContents. Preface... xi. About the Authors... xiii
Contents Preface... xi About the Authors... xiii Chapter 1: Managing Insurance Costs..1 Determining Insurance Premiums...1 Insurance Advisory Organizations...2 The Rating Process...2 Loss Costs versus
More informationChapter 26. Tax Relief for Pension Contributions: Application of Earnings Limit
Chapter 26 Tax Relief for Pension Contributions: Application of Earnings Limit Created June, 2013 Introduction 26.1 Section 790A TCA 1997 provides that an aggregate earnings limit is to apply for the purposes
More informationBusiness Income With Extra Expense
Business Income With Extra Expense Table of Contents Section Page No. Premises Coverages 3 Additional Coverages 5 Limits Of Insurance 11 Waiting Period 11 Loss Determination 11 Loss Payment Option 12 Loss
More informationIs Account Receivables Your Largest Asset? Unleash the Hidden Values A/R Insurance Can Deliver to Your Company. Presented by Glenn Robins
Is Account Receivables Your Largest Asset? Unleash the Hidden Values A/R Insurance Can Deliver to Your Company Presented by Glenn Robins US Companies Profile On Insuring Assets Compare Balance Sheet Assets
More informationProtecting Your Credit Union
Protecting Your Credit Union A More Strategic Approach Fall 2011 As a credit union, you are strategic in everything you do. Shouldn t your approach to risk/insurance be the same? Why do you buy directors
More informationBUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM
COMMERCIAL PROPERTY CP 00 30 10 00 BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and
More informationTESTIMONY JACQUES E. DUBOIS CHAIRMAN AND CEO, SWISS RE AMERICA HOLDING ON BEHALF OF SWISS RE BEFORE
TESTIMONY OF JACQUES E. DUBOIS CHAIRMAN AND CEO, SWISS RE AMERICA HOLDING ON BEHALF OF SWISS RE BEFORE THE UNITED STATES SENATE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS OVERSIGHT OF THE TERRORISM
More informationAppendix 1 Handling Mortgage Endowment Complaints
Appendix Handling Mortgage Endowment Complaints.2 The standard approach to redress App.2. If there has been a failure to give compliant and proper advice, or some other breach of the duty of care, the
More information10 TIPS. for better Fleet Management WHITE PAPER. Who should read this paper? CEOs CFOs COOs Fleet managers Finance executives
WHITE PAPER 10 TIPS for better Fleet Management by Valério Marques CEO, Frotcom International Who should read this paper? CEOs CFOs COOs Fleet managers Finance executives This paper shows that with a few
More informationUPDATED SECTION 8. (If you are testing on or after July 1, 2006 please study this in place of Section 8 in your book) 2006 Businessowners Policy
UPDATED SECTION 8 (If you are testing on or after July 1, 2006 please study this in place of Section 8 in your book) 2006 Businessowners Policy The BOP (Businessowner's Policy) is a package policy especially
More informationDistributed Denial of Service Attack (DDoS)
Distributed Denial of Service Attack (DDoS) Ryan Tooley, CPA, MBA Senior Manager Marvel & Associates, LLC (401) 847-6600 Focus: This paper focuses on the role and approach of a forensic accountant in evaluating
More informationFlorida Hurricane Catastrophe Fund. Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments
Florida Hurricane Catastrophe Fund Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments Table of Contents Purpose and Scope 3 Introduction 3 Aggregate Net
More informationReal Estate advisor. Protecting your income with business interruption insurance. March April 2012. Ask the Advisor. A loan primer
Real Estate advisor March April 2012 Protecting your income with business interruption insurance A loan primer It pays to know the rules SMLLCs: The good, the bad and the ugly Ask the Advisor How can I
More informationCommercial Property. Inland Marine. Boiler and Machinery. Crime. Commercial Automobile. Commercial General Liability. Commercial Umbrella
A consumer information brochure published by the 21 South Fruit Street, Suite 14 Concord, NH 03301 phone: (800) 852-3416 fax: (603) 271-1406 TDD Access: Relay NH 1-800-735-2964 What Kind of Do I Need to
More informationCyber Risks Connect With Directors and Officers
Cyber Risks Connect With Directors and Officers Implications of the New SEC Guidance on Cyber Security February 2012 Lockton Companies, LLC The Securities and Exchange Commission (SEC) has changed the
More informationShaving of Limits Has Limits of Its Own
Shaving of Limits Has Limits of Its Own May 2013 Lockton Companies When an underlying carrier does not pay its limit, the insured company may find itself at an impasse. After all, excess insurance does
More informationFederal Income Tax Information January 29, 2016 Page 2. 2016 Federal Income Tax Withholding Information - PERCENTAGE METHOD
Federal Income Tax Information January 29, 2016 Page 2 - PERCENTAGE METHOD ALLOWANCE TABLE Dollar Amount of Withholding Allowances Number of Biweekly Monthly Withholding Pay Period Pay Period Allowances
More informationEXTRA EXPENSE COVERAGE FORM
EXTRA EXPENSE COVERAGE FORM COMMERCIAL PROPERTY CP 00 50 06 07 Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.
More information