A Reference Guide to Assist Companies that have Suffered Damages
In the aftermath of a major hurricane like Hurricane Milton, businesses face numerous challenges. One of the most critical tasks is documenting and substantiating the loss impact suffered through the insurance claim process to recover the insured damages. This guide aims to provide essential information to help you understand and manage the recovery process effectively.
Understanding Your Coverage
Before diving into the claims process, it’s crucial to review and understand your insurance policies. Most businesses have several types of coverage that may apply:
- Property Damage Insurance: Covers physical damage to your building, equipment, and inventory.
- Business Interruption Insurance: Compensates for lost income during the time your business is closed due to covered damages.
- Flood Insurance: Often a separate policy, crucial for hurricane-related water damage.
- Wind Insurance: May be included in your property policy or require separate coverage in high-risk areas.
Steps to Take Immediately After the Hurricane
- Document Everything: Take photos and videos of all damage before starting any cleanup or repairs.
- Mitigate Further Damage: Take reasonable steps to prevent additional damage, such as covering broken windows or removing standing water.
- Contact Your Insurance Provider: Notify them of your intent to file a claim as soon as possible.
- Keep Detailed Records: Track all expenses related to temporary repairs, cleanup, and business interruption.
The Claims Process: What to Expect
- Initial Assessment: An insurance adjuster will visit to assess the damage.
- Provide Documentation: Submit all evidence of damage and loss, including photos, videos, and financial records.
- Claim Evaluation: The insurance company reviews your claim and supporting documentation.
- Negotiation: There may be back-and-forth discussions about the value of your claim.
- Settlement: Once an agreement is reached, you’ll receive payment for your claim.
Common Challenges in Hurricane-Related Claims
- Determining Causation: Separating wind damage from flood damage can be complex, as they’re often covered under different policies.
- Business Interruption Calculations: Accurately estimating lost income and ongoing expenses can be challenging.
- Underinsurance: Many businesses discover they’re underinsured only after a disaster strikes.
- Claim Denials: Insurance companies may dispute certain aspects of your claim, leading to partial or full denials.
The Importance of Professional Valuation Services
Accurately valuing your losses is crucial for ensuring fair compensation. Professional valuation services can help by:
- Providing expert analysis of property damage and business interruption losses
- Ensuring all aspects of your loss are identified and properly documented
- Assisting in the preparation of comprehensive claim documentation
- Offering expert support during negotiations with insurance adjusters
- Don’t rely on the insurance company’s recommended forensic accountant – seek an independent forensic accountant to confirm whether the calculation is appropriate.
- The process to document the claim is based on a “but for” analysis, which has subjectivity and it is important to rely on accurate and verifiable data.
When to Seek Professional Help
Consider reaching out to a professional valuation service if:
- You’re unsure about the full extent of your losses
- Your business interruption claim is complex
- You’re facing challenges or disputes with your insurance provider or you disagree with the claim calculation prepared by the insurance provider’s forensic accountant
- The claimed amount is significant, and you want to ensure you’re not leaving money on the table
How Grassi Can Assist
At Grassi, our team of experienced professionals specializes in documenting and substantiating insurance claims related to natural disasters. Grassi can help by:
- Accurately documenting and substantiating the loss impact
- Working through the complexities of business interruption claims to communicate the impact in a written report with financial analysis to substantiate the losses
- Prepare comprehensive claim documentation
- Provide expert support during negotiations with insurance adjusters
Don’t risk substantiating your insurance claim to inexperienced service providers. Contact James O’Brien, Partner and Forensic, Litigation & Valuation Services Leader, today for a complimentary consultation to discuss how we can assist you in maximizing your recovery and getting your business back on track.
Do you have financial questions related to your claim preparation process? Grassi’s Crisis Response & Recovery team can help, call our hotline for immediate assistance.
If you are experiencing a significant business crisis that requires a real-time response, call our Crisis Response & Recovery Hotline at 212.223.6216 to speak with a Grassi advisor or email us at response@grassiadvisors.com.
Remember, acting promptly and seeking professional assistance can significantly impact the outcome of your insurance claim. Let Grassi be your partner in navigating this challenging process and securing the compensation your business deserves.
