Having well organized financial records ready before a business interruption appraisal begins can make the process more efficient and help support a clear, well documented claim.
Start with several years of historical profit and loss statements, which help establish a reasonable baseline for what the business would have earned without the interruption.
Tax returns and payroll records provide additional support for income and expense figures, helping corroborate the numbers shown in financial statements.
Records of ongoing operating expenses during the interruption period, along with documentation of any extra expenses incurred to reduce the impact of the loss, should be gathered and clearly organized.
A clear timeline documenting when the interruption began, key milestones during the restoration period, and when normal operations resumed helps support the period of restoration used in the overall calculation.
Working with an accountant early to organize these records in a clear, presentable format can save significant time once the appraisal process is underway.
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.