Business interruption claims can be disputed for a variety of reasons, often related to how lost income is calculated or how long the interruption period should reasonably last.
One frequent area of disagreement is the projected income the business would have earned if the loss had not occurred, since this typically requires estimating what would have happened rather than simply documenting what did happen.
The length of the interruption period, often called the period of restoration, is another common point of dispute, particularly when there is disagreement about how long repairs reasonably should have taken.
Extra expenses, meaning costs incurred to reduce the interruption or continue operating in some capacity, can also be disputed, especially around whether specific expenses were reasonable and necessary given the circumstances.
Because these claims involve financial projections and judgment calls in addition to physical facts, thorough documentation and, where appropriate, professional financial analysis can help support a fair resolution through appraisal.
This article is general education about how the appraisal process commonly works. It is not legal advice, and specific procedures can vary by state and policy. If you have questions about your own claim, review your policy language and talk with your insurance company, agent, or an attorney familiar with your state’s laws.
Russ Lis is a working property insurance appraiser and umpire based in Minnesota, serving clients nationwide. Have a question about your own claim? Contact Appraisal Resolution.