BUSINESS INTERRUPTION CLAIMS COVERAGE – BASIC CONCEPTS Willis Risk Control and Claim Advocacy Practice March 23, 2015

Speakers John Bobo South Region Technical Claim Manager Willis North America Bill Warren, CPA, CGMA Partner-in-Charge RWH Myers, Atlanta, GA.

Agenda What is Business Interruption insurance? What triggers Business Interruption coverage? How is a Business Interruption loss measured? Additional Coverage's What to do when a loss occurs

What is Business Interruption Insurance? provides for the maintenance and stability of the income (revenue) statement, comparing projected results with actual results after a loss. “Do for the organization what it should have done for itself, had no loss occurred. DOAS will reimburse the Actual Loss of Income Sustained, less any non-continuing expenses and charges…..

Must have a Property Trigger – must be a covered loss to a covered location under the policy “must be to insured property by a Covered Cause of Loss” Loss Measurement (clarification between BI and Extra Expense) Deductibles and Retentions – “72 hour waiting period” What Triggers Business Interruption Coverage, and how is the loss measured?

Additional Coverage's Extra Expense – “reasonable and necessary extra expenses” Rental Value – “loss sustained”….due to unlivable conditions.

What to do When a Loss Occurs Report the claim as soon as possible to DOAS Segregate charges associated with the loss to a special account or work order code, grouping like items Provide good descriptions of all work performed and expenses incurred Gather all supporting documentation

Coverage Wording Business Interruption and Extra Expense DOAS will reimburse the Actual Loss of Income Sustained, less any non-continuing expenses and charges, resulting from direct physical loss, damage or destruction to insured Property by a Covered Cause of Loss after a 72 Hour Waiting Period DOAS will reimburse the reasonable and necessary “extra expenses” incurred by a Covered Party resulting from direct physical loss, damage, or destruction to insured Property by a Covered Cause of Loss contained in this Agreement not to exceed the greater of $50,000 or 15% of the total insured property values in BLLIP affected by the covered loss occurrence. Measuring ROI of Med Containment Services| 7