Valuing Business Income Exposures

A D J U S T I N G T O D A Y CORPORATE OFF ICE 126 Business Park Drive Utica, New York 13502 800.382.2468 Outside U.S. (315) 797.3035 FAX: (315) 272.2054 Editor@AdjustingToday.com WEB ADDRESSES www.AdjustersInternational.com www.AdjustingToday.com PUBL ISHER Ronald A. Cuccaro, SPPA EDI TOR Sheila E. Salvatore ADJUSTING TODAY is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal or financial advice for specific cases. AT13 3013-3R Copyright © 1997 Adjusters International, Inc. Adjusters International ® and the AI logo are registered trademarks of Adjusters International, Inc. Randy H. Goodman, SPPA Adjusting Today on the Web — www.AdjustingToday.com View our entire catalog of back issues, download PDF versions, subscribe and contact the editor Follow Adjusting Today on Facebook & Twitter: Facebook.com/AdjustersInternational Twitter.com/AdjustingToday With blanket coverage, the parent and all subsidiaries can be included together and their combined values insured without duplication. “ ” One of the great advantages of blanket business income insurance is the avoidance of the duplication of values when there is interdependency among separate locations. This is particularly true with a parent company that has subsidiaries. With specific coverage at each location, the total value generated at each location — including spill-over value at other dependent locations either “upstream” or “downstream” from the location—must be included at each location. With blanket coverage, the parent and all subsidiaries can be included together and their combined values insured without duplication. Acommon method used to project all interests on the policy is to insure “SES Corporation [parent] and all subsidiary or affiliated companies [and/or partnerships], as interests may appear.”

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