Are you really a business interruption expert? Can you recite the Six P’s and Six E’s of Business Interruption Claims? This afternoon at 2 PM EST, I will be quickly addressing these concepts, with an emphasis on one P—The Period.

The National Underwriter published a treatise, Business Interruption Insurance: Its Theory and Practice. It is an excellent work, and anybody involved with insurance coverage issues and claims handling of business interruption claims should attempt to obtain this now out of print book originally published in 1986. The book called this method of business interruption claims handling a “structural analysis” approach to business interruption insurance.

I think it is just common sense. The analysis works like a checklist when considering the various components of a business interruption claim. The P’s are the theoretical aspects of gaining coverage. The E’s work as the limitations and exclusions to the benefits.

The Period of Interruption is one of the P’s. One of the tools I routinely teach that adjusters for carriers or public adjusters use to determine the theoretical period of interruption is the critical path analysis. I often suggest using software that property developers use when designing their projects so that items from the “owner of the property” perspective is included in the tasks to be completed.

For instance, in Adjustment Time and Wrongful Denial Considered in Period of Restoration, we posted that adjustment time should be included to determine the period of restoration. In a developer’s tasks for a construction project, the analogous task is of “finance.” Without money, no construction happens. Indeed, if there is a mortgagee listed on the property, the tasks of reporting and getting the mortgagee to approve the anticipated repair to the collateral should be included in the critical path tasks and in the period of restoration because these steps are usually required under a commercial loan or mortgage.

I will have more information on this later and hope you can join us at this link today at 2. Hope to see you this afternoon.

Thought For The Day

Let our advance worrying become advance thinking and planning.
—Winston Churchill