28 | AUGUST 2018 | Claims Magazine | PropertyCasualty360.com
When a catastrophic loss hits, a com- mercial insured’s business interrup- tion (BI) insurance coverage can be the difference between business sur-
vival and demise. Anticipating the traps lurking in
ever-evolving policy wording, likely loss-quantifi-
cation approaches, and a host of other complicating
factors, including constantly shifting insurable risks,
can present significant challenges to even the most in-
Add to this the fact that a disputed claim can take
years to resolve — distracting management from its
primary focus of getting the business back up and
running — and the need for a team that includes competent forensic accountants and able coverage counsel
working on behalf of the insured becomes clear.
Thus, the savvy insurance buyer should regularly
evaluate whether seemingly nuanced changes to policy language or new coverage options properly respond to the insured’s risks.
Common claim disputes
What follows are five commonly encountered claim
disputes. With proper assessment at the policy-place-ment stage and experienced shepherding of the claim
through the preparation and settlement process, these
challenges can often be avoided.
THE INS AND OUTS
By Nancy Kornegay, Karl Killian and Shawn Pickens