Valuing Business Income Exposures: A Case for Blanket Business Income Insurance



Determining Insurable Business Income Values: Establishing Potential Exposures – Do a Worst-Case Scenario

Under actual loss conditions, many unforeseen problems can arise. Remember that there seems often to be a “Murphy’s Law” at work; that losses tend to occur at the worst possible time and under the worst possible circumstances, so the worst-case scenarios should be considered (it is better to be a little pessimistic than unduly optimistic). Among the many factors that should be considered are:

Time Element Coverage: Some Choices

With the results of such a study, the various impacts can be quantified and costs projected to determine the appropriate amount of coverage to purchase. The type of coverage should also be carefully evaluated to be sure that optimum coverage is provided. Following are the typical choices of time element coverages: