| Claim Handling |
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The handling and management of the business interruption claim begins with a data collection exercise so that the Insurer can be provided with an initial opinion on what the estimated maximum loss is expected to be. It is important that the information provided is accurate and fully explained. For example normal accounting definitions of gross profit are rarely the same as defined under the policy. (for good reason). Having established past performance, the future has to be forecast together with when the business is likely to return to this level of normality. The ‘How’ of getting back to normal is where there will be a range of options one of which must be chosen. Factors that will influence this choice will be policy cover and future plans for the Company as well as the opportunity for business improvements. At the heart of getting the business back to normal is the recovery plan that we will prepare with the client and agree with Insurers as being the most appropriate way forward and a template against which performance and funding (from insurers) can be managed and measured. At this time strategies for shortening the recovery period or changing any aspects of the business will be discussed and agreed Regular statements of claim will need to be prepared to monitor the loss as it unfolds, as well as providing the basis for the Insurers to provide interim payments to replace the lost cash flow caused by the incident. The claim preparation will involve all the necessary analysis of financial, market and other information in order to support the claim and the projections made in it. Can you answer the following questions?
Are you confident the answers will turn out to be true in reality |