As written in the Bober Markey Fedorovich Valuation Advisor by Bryant D. Petersen on November 12, 2019:
To weather a business interruption, damaged businesses need to be made whole again as quickly as possible. Business interruption (BI) insurance – or business income insurance – is a type of insurance that covers the loss of income because of a disaster, typically when the loss is due to suspension of operations and direct physical loss of property. BI insurance is designed to put the insured in the same financial position it would have been in if the disaster had not occurred.
BI claims are an area of complex issues that are highlighted in the Risk and Insurance Management Society 2017 Business Interruption Survey. Key findings include:
- 17% of risk managers were “extremely confident” that their BI values and limits are adequate.
- 40% have experienced a BI loss and subsequent claim within the past five years.
- 58% of risk managers who have been through a claim said that “difficulty quantifying loss” was the biggest challenge they faced;
- 39% of risk managers indicated that their existing BI policy provides either insufficient or no coverage for cyber risk. 10 percent…
