Business Interruption policies define the nature of indemnity but do not define the exact documents required to support a claim. Besides, when requested, most policyholders are reluctant to share financial data even if it is necessary to prove their loss.


So how does an adjuster begin gathering financial and other documents from policyholder to calculate the loss?


Orion adjuster will first establish rapport with the insured, remind him/her the duties under the policy to cooperate and convince that all loss related documents and information he/she provides will be confidential and will only be used to calculate the loss.


Here is a sample list of documents we typically request from policyholders to begin our loss adjustment process:

  • Profit and Loss Statements
  • Daily Production Reports
  • Inventory
  • Cost Accounting Reports
  • Invoices and Purchase Orders
  • Payroll

... and the list can go on based on the nature and extend of the loss


Your insured is a manufacturing plant. A fire destroys two-thirds of the shipping department and causes heavy smoke and water damage to the rest of the facility including the general offices.
Here are some of the conditions that could exist following this loss:

  • Insured’s ability to produce goods is diminished by 80%
  • Finished goods in the warehouse are partially damaged
  • The phones are out
  • Employees might have to be laid off
  • Local building department, environmental inspectors, etc become involved
  • Insured may not be able to rebuild on the same site
  • Insured’s newly installed production equipment had just arrived but wasn’t included on the last insurance valuation
  • Because all lines had been working 24 hours a day, 7 days a week before the loss, making up lost production is a problem
  • Raw materials are not readily available and those that have been shipped cannot be received

These are only some of the adverse conditions resulting from the loss. Another element may be that shortly after the fire, insured begins hearing rumors spread by his competitors that the fire completely put him out of business.