Tuesday at 2 With Chip is Wednesday at 2 today because of a remote and successful GAPIA seminar yesterday. Today, I will go over three topics:

  1. The New Colorado Law Regarding Cooperation Requirements Following Loss
  2. Understanding Business Interruption Concepts
  3. Adjusting Commercial Claims Involving Leases Continue Reading Chip At 2 Today—-New Colorado Cooperation Law, Understanding Business Interruption Concepts, and Adjusting the Lease Exposures

We have made it to the last of the Six P’s and Six E’s, if you have been following this series of business interruption insurance. “Enough” is the last element of these. This is the concept that the policyholder must carry “enough“ insurance to collect for the loss in full. The essence of this is:

[N]ot the obvious fact that the face amount of the policy must be as great as the amount of the loss if the Insured is to collect fully. Rather it is the provision found in most Business Interruption policy forms called a Coinsurance Clause, which penalizes the Insured if the face amount of the policy does not equal an agreed percentage of the total amount at risk-the amount of money that the Earnings Stream would have produced in a period of twelve months if no damage had been suffered-referred to as the Business Interruption Value.1

Continue Reading The Last “E”—Did the Policyholder Purchase “Enough” Business Interruption Insurance to Avoid Co-Insurance or Contribution?

California Congressman Mike Thompson has filed a bill to help some business owners with business income policies collect benefits for Covid-19-related losses from their insurers.1 Here is a quote from Representative Thompson’s press release explaining his reasons for filing this federal legislation: Continue Reading Will Recently Filed Federal Legislation for the Covid Closed Business Policyholder Have A Possibility Of Passage?

“Extra” is the E that largely stands for the concept of expediting costs which are incurred to reduce the ultimate loss. “These are out-of-the-ordinary expenses.”1 They are differentiated from the normal expenses to repair and replace damaged property covered under the property insurance policy. These expediting costs usually fall into three categories:

  1. Those that speed up the return to normal operations;
  2. Those that continue operations during the period of interruption but at a higher than normal cost;
  3. Those incurred, after operations are resumed, to refill inventory.

Continue Reading What Is the “Extra” E and Why It May Be The Most Important “E” of “The Six E’s” of Business Interruption Insurance?

The “Culture of Cancel” is not with the Georgia Association of Public Insurance Adjusters (GAPIA.) Their Board is hardworking and progressive. They have set an online conference for Tuesday, July 14, 2020. So, you can attend from anywhere and still be there. Continue Reading A Sign of The Times—The Georgia Association of Public Insurance Adjusters Holds Its Conference Online: Register By This Sunday July 12

The first two E’s of business interruption insurance claim theory were discussed in, The First Two Elements of The Six E’s of Business Interruption Coverage—Extent and Experience. Today, we are going to discuss the elements which are Excluded and Effort. I know I am skipping “Extra” but Extra deserves extra discussion. Continue Reading The Excluded and Effort Elements of Business Interruption Insurance Claims Theory

Declaration of Independence signer Benjamin Franklin helped form The Philadelphia Contributionship For The Insurance of Houses From Loss By Fire in 1752. It is America’s longest tenured property insurer. It has withstood the test of time, has a rich history and even a museum you can visit. Continue Reading Historical Thoughts About Property Insurance Over Independence Day Weekend

A must read for any practicing trial attorney – Rules of the Road: a Plaintiff Lawyer’s Guide to Proving Liability, takes the reader on a journey from the initial filing of the complaint to discovery, to the use of experts and of documents in preparation for trial, and then into the crucial techniques necessary to win any trial, all while using the Rules of the Road. Continue Reading Rules Of The Road, by Rick Friedman

Insurance coverage gaps, miswritten policies, and non-reviewed insurance policies are routinely found after hurricanes do catastrophic coverage. It is still not too late for business owners in hurricane country to review their insurance policies, meet with their insurance agents, and get a plan in place. Continue Reading What Should Business Owners Do Now to Prepare For Hurricane Season—Tuesdays at 2 With Chip Merlin

The Six E’s

  1. Extent
  2. Experienced
  3. Excluded
  4. Extra
  5. Effort
  6. Enough

The essence of the Six E’s is that insureds may receive benefits to the Extent of the loss Experienced, not resulting from Excluded causes, and also for Extra expenses incurred, provided that Effort is made to reduce the loss and there is Enough insurance purchased. Continue Reading The First Two Elements of The Six E’s of Business Interruption Coverage—Extent and Experience