Business Interruption Guy

Hotel Owners:

Frustrated trying to collect on your business interruption claim?

Call me.

Check out my ad in Hotelier Magazine.

Thinking about handling your business interruption or income claim on your own? Think again.

Don't try to navigate the complexities of a business interruption or business income claim by yourself—and definitely don’t leave it to the insurance company to settle it for you. The process can be overwhelming, and mistakes early on can cost you significant time and money.

The good news? Many commercial property policies cover the cost of professional assistance. Bringing in an expert sooner rather than later can streamline the process, reduce expenses, and ensure you get the compensation you're entitled to.

But don’t just take my word for it. Here's what one of my recent clients had to say about my work:

These are a few of the objections I have recently encountered on business income claims:

• There was no loss because COVID shut down travel.
• The loss is small because it was a startup.
• There is no loss because the net income was negative.
• No lost business income because other rooms were available.
• Business income is low because expenses are discontinued.
• Well, that’s what the accountant calculated.

Does this sound familiar? Overcoming these obstacles is what I do. Call me if you need help.

Settling an insurance claim is like selling a house. An insurance claim is an asset. It is a claim on funds owed to you under your insurance contract.

Let’s say you own a realistically valued house at $100,000 and want to sell it. You have several options; the two most common are:
1. For sale by owner;
2. Hire a real estate agent.

The second primary choice you make is how you price your house. If you want to sell quickly, you could price the house at $75,000 or even $50,000. If you wish to receive the home's total value, it will take longer to sell.

It works the same way with an insurance claim. The adjuster often will present an amount of $50,000 for what the policyholder thinks should be a $100,000 claim. If the policyholder wants to settle quickly and needs the money fast, they can sign and be done with it.

Engaging a business income specialist or a public adjuster can significantly impact the insurance claim process. It's not about the process taking longer because a professional is involved, but rather because the professional is striving to secure the full claim value, potentially maximizing your settlement.

Deciding whether to seek professional help or handle the claim independently is a critical choice. It's not just about the speed of the claim settlement but also about balancing the demands of running a business or working a job. Each policyholder must carefully consider their situation to make the best decision.

As a public adjuster, you are a fiduciary, required to put the interest of your client first. You have been entrusted with resolving their insurance claim to the maximum allowed under the policy. Don’t overlook the business income claim!

If you neglect the business income claim and focus solely on the physical property damage, you're putting the business owner at a significant disadvantage in the claims process. After a loss, the insurance carrier will demand the business owner to provide financial information. Months later, the business owner will receive an Excel model from the insurance carrier, indicating the value they believe should be paid for the business interruption. This is where the process often halts, unless the business owner objects to the calculation. If they do, more information will be required, and the calculation might be revised. However, if the business owner lacks the expertise to forecast and document their lost business income, the insurance calculation is typically presented as a “take it or leave it” offer.

A substandard payment on a business income claim harms the business owner and reduces the payment to the public adjuster, underscoring the importance of prioritizing these claims.

My role is to assist public adjusters and business owners in documenting and presenting their business income claims, ensuring they receive the maximum compensation they are entitled to.

This is how I work:

1. I contract directly with the policyholder;
2. I charge an hourly rate;
3. My fee is often reimbursed to the policyholder under their property policy:
Claims Preparation Coverage
Professional Fees Coverage
Extra Expense Coverage
4. Upon payment of my invoice, I sent the entire Excel file to the public adjuster and policyholder;
5. I allocate 2 hours for discussion with the insurance carrier’s accounting staff

Questions?

Call me: Andrew Sall, Business Interruption Guy 832.710.7909.