Blogger:  Lee M. Epstein

Beyond the personal toll extracted by Hurricanes Harvey and Irma, the property and business losses are projected to be among the greatest caused by a natural disaster. As the recovery efforts continue in earnest, the following Checklist is offered to assist those who have suffered a loss and are planning to submit an insurance claim for any property loss and business interruption suffered.

□    Restore service to any property protection systems that have been damaged, such as
     sprinklers and alarms

       □    If property protection cannot be restored, post a watch

□    Notify all insurance companies whose policies may be implicated

       □   Consider whether notice should be given to excess insurance companies or to
           insurance companies whose policies have expired

□    Prepare a preliminary report describing:

      □    The type of loss

      □    The date and time of the loss

      □    The location of the loss

      □    A contact person at the company

      □    The property involved, including: buildings, equipment and stock

□    Determine if:

      □    The property is protected from further damage

      □    Any buildings require temporary enclosures

      □    Any utility lines have been damaged and require repairs

□    Identify and separate damaged and undamaged property

□    Commence salvage operations

□    Determine whether:

      □    Production can be restored at the damaged facilities

      □    Damaged equipment can be repaired

      □    Substitute facilities and equipment are available and necessary

      □    Lost production can be made up through inventory, overtime, or other

□    Formulate a plan with the insurance company’s input for making repairs, 
     securing substitute facilities and equipment and undertaking other loss
     mitigation efforts

□    Set up accounting procedures to track:

      □    Property Damage

            □    Create separate accounts for all loss-related expenses

            □    Implement procedures for collecting and maintaining all loss-related
                 documentation  in accordance with insurance policy terms, including
                 invoices, contracts and manpower hours

            □    Inventory damaged and undamaged goods

      □    Business Interruption

            □    Determine the “period of interruption”

            □    Determine the quantity of lost production as reflected in inventory 
                 records, production records and sales records. Compute what the business
                 would have normally produced, had there been no loss, then see how many                    
                 units were actually produced.  The difference is the gross lost production.
            □    Deduct any sales or production that can be continued or made up through
                 the use of existing inventory, the utilization of other plants, the utilization
                 of overtime hours or other loss mitigation efforts.  The difference is the
                 net lost production.

            □    Multiply the net lost production by the marginal value of a single
                 production unit.

            □    Add back the extra costs associated with replenishing inventory and loss
                 mitigation efforts.

□    Prepare and submit claim

      □    Summarize

            □    Date, location and type of loss

            □    Amount claimed

      □    Break down the amount claimed

            □    Property damage

                  □    Real property

                  □    Equipment

                  □    Stock and supplies

                  □    Demolition and debris removal

      □    Business Interruption

            □    Interruption Period

            □    Sales value of lost production

            □    Expenses incurred to reduce the loss

□    Attach supporting documentation for each element of the property damage and
     business interruption

□    Press for written extensions of time to submit claim and to file suit if necessary

□    Seek prompt payment of claim by insurance company

□    If a dispute over a claim arises, determine

      □    Whether appraisal is appropriate or beneficial

      □    Whether litigation will expedite payment of claim

For more information, please contact Lee Epstein, Chair of the Insurance Counseling and Recovery Department at Flaster Greenberg PC. 

Before and After the Storm: Minimizing Loss and Maximizing Insurance Recoveries in Response to Your Next Business Interruption

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Recent events remind us that natural disasters or catastrophes can disrupt normal business operations for weeks, months and even longer. Catastrophic events may even force relocation in order to continue operations.

Preparation is the key to effectively responding to any business interruption. An essential component of any disaster recovery plan is Business Interruption Insurance that provides protection when income is lost as the result of a business interruption. Flaster/Greenberg and The Safegard Group invite you to an interactive seminar that will discuss minimizing the impact of business interruptions and maximizing your insurance coverage. Topics include:

  • How to minimize a business interruption loss through risk management
  • Steps to take so you don’t need to rely on business interruption insurance
  • Smart disaster recovery planning
  • Industry-specific interruption coverage
  • What to do if you suffer a loss despite the efforts you made prior to an interruption
  • How to present your claim effectively and achieve the best resolution
  • Potential legal and coverage issues

Real life case studies and examples will be presented.

Professional Credits:

Accountants: 1.5 CPE credits


Lee M. Epstein, Esq., Weisbrod Matteis & Copley PLLC.

Brian Courtney, RPLU AAI, Healthcare Practice Leader/Professional Lines Division, The Safegard Group, Inc.


8:00 a.m. Breakfast and Networking 8:30 – 10:00 a.m. Program and Q&A


The Safegard Group, Inc. 100 Granite Drive Suite 205 Media, PA 19063