Property Insurance Claims: Negotiating Unfamiliar Terrain

An Excerpt from a 600-Page Business Income Claim

Loss of Income

Sales (Schedule A)

September October November December January February March April May

Lost Sales See Schedule A $58,704 $94,800 $106,571 $131,542 $89,727 $77,333 $92,175 $836,382 $93,187

Net Profit Lost See Schedule B 12,974 20,951 23,540 29,071 19,830 17,091 20,371 19,090 20,549

Plus: Continuing Expenses

Administration See Schedule C-1 3,027 2,884 507 626 427 368 439 411 444

Occupancy See Schedule C-2 6,546 6,546 6,546 6,546 6,546 6,546 6,546 6,546 6,546

Advertising See Schedule C-3 1,514 2,445 2,747 3,393 2,314 1,994 2,377 2,228 2,403

Selling See Schedule C-4 5,168 5,168 5,168 5,168 5,168 5,168 5,168 5,168 5,168

Total Continuing Expenses 16,255 17,043 14,968 15,733 14,455 14,076 14,530 14,353 14,561

Other Income

Delivery See Schedule D-1 647 1,530 1,719 2,123 1,448 1,248 1,487 1,394 1,504

Fabric Protection See Schedule D-2 1,086 1,754 1,970 2,433 1,660 1,413 1,705 1,598 1,724

Appliance Warranties See Schedule D-3 4 7 8 9 6 5 7 6 7

Misc. Inc. (Short Over) See Schedule D-4 - - - - - - - -

Total Other Income 1,737 3,291 3,697 4,565 3,114 2,666 3,199 2,998 3,235

Business Income Loss $30,966 $41,285 $42,205 $49,369 $37,399 $33,833 $38,100 $36,441 $38,345

Cumulative Loss $30,966 $72,251 $114,456 $163,825 $201,224 $235,057 $273,157 $309,598 $347,943

Remember that business income loss calculations are built upon a foundation of subjectivity.

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