Business Interruption Insurance

How to prepare the proof of loss.

Are you able to quantify the impact of a loss on your revenues? Whether your business is retail, distribution, manufacturing, or industrial, GPL can help. Although 80 to 90 percent of business interruption claims are for short periods, i.e. two to six months, you have to be ready to answer accounting questions from specialists assigned to your file by the insurer.

What you should do

When preparing the proof of loss, you must prove that there was a reduction in your customer base, that orders or contracts were lost or cancelled and that this is a direct consequence of the event. You must also convince the insurer that you are not able to resume production at another one of your facilities. Aside from the loss of revenues, the insurer will look at production stability – in the case of a manufacturing risk – i.e. an upward or downward trend.

Here are a few key issues to consider in business interruption:

Helpful hints

This newsletter is produced for your information only and constitutes neither an opinion on the stated coverage nor legal advice.