Finding a workable method to efficiently and effectively handle an increase in business interruption claims could require looking at these claims from a different perspective. (Photo: Shutterstock)
It's just so clear — business interruption (BI) claim handling proves that BI cover would best serve insureds, insurers, and economies if the cover migrates from an indemnity model to parametric. There's entirely too much under-productive effort expended for insureds proving a claim, and too much claim handler time expended confirming the proof.
A real-world example helps prove the case. A business that averages less than $500K revenues per year recently suffered a covered loss that prompted the biz to experience a full shutdown over a full calendar quarter. The insured presented the claim with substantiation of prior year financial activity and proof of the current year's activity comparatively to help the carrier to calculate the BI loss, BI cover being as defined in the policy as the reduction in net income for the covered period, and excess expenses incurred solely due to the effect of the covered peril.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
