Jodi T. Venable joins Provencher & Company, LLC as Case Manager, Business Interruption

2016 Jodi VHammond, LA – March 13, 2017– Provencher & Company, LLC is pleased to announce that Jodi T. Venable of Mandeville, LA has joined the company as a Case Manager in the firm’s Forensic Accounting and CPA Expert Services Unit. Jodi brings many years’ experience delivering top-notch professional services to several insurance related industries, accepting increasingly responsible roles and maintaining an excellent performance record and reputation over that time. Continue reading

Katherine Bentz Joins Provencher & Company as Sr. Case Manager

Katie 4 - PreferredHammond, LA – January 14, 2016 – Katherine Bentz joins Provencher & Company as Sr. Case Manager in the Business Interruption Unit. With degrees in both engineering and accounting, Katherine has developed an analytical mindset that guides her to excel in her role. Her attention to detail assures accurate delivery of custom protocols to clients of Provencher & Company.

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Raiders of the Lost Profits – Part Five: Reporting to HQ

Dispatch: This is what we know so far…

 

Scenario 1:

 

  • The structure suffered minimal damage from the storm in the form of wind driven rain through openings in the door
  • The proprietor shut down the market for a period of eight days due to water damage and lack of customers due to the area wide evacuation requested by the mayor forty eight hours before the storm made landfall
  • I observed no physical damage in the area around the market that would prevent ingress or egress to the building or prohibit access to the business
  • The market was without power for five days – power supplier information and billing information has been requested to determine if the power failure was from a peril covered under the policy.
Scenario 2:

 

  • Heavy winds damaged the roof over the leased market space causing water intrusion and damage to the covered business personal property
  • Although our client does not insure the leased space or the roof, the damage to same was from wind which is a covered peril under the insurance policy
  • I have spoken with the landlord’s contractor and found that the estimated repair time for the roof and interior structural damage is three months
  • After adjustment time is factored in, the replacement of the BPP should reasonably take thirty days
Note that in both scenarios, cause of loss (covered or not) and periods of either suspension or restoration are addressed even if not completely resolved.
Determining coverage for Business Interruption can be a tricky road to navigate. Reporting all the known facts and observations at the time of inspection will assist in the triage process and will help to confirm whether coverage exists or not, applicable limits, restrictions, exclusions, deductibles, and most important: actuation of coverage (or lack thereof). The Report Writing guidelines in your adjuster on-boarding package will provide a more detailed outline of the information required when making your first report so you can complete your mission and move on to your primary mission – completing the damage estimate.

And, as always, the Business Interruption office at Provencher HQ is just a phone call away! If we don’t know the answer immediately, we’ll find it for you!


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Introduction: Introduction to Inspection for BI
Part One: The Secrets of Daily Loss Inspection
Part Two: Adventures in CAT Inspections
Part Three: Search for the Grail: Covered Cause of Loss vs. Actual Cause of Loss
Part Four: Pit of Snakes: Establishing Period of Restoration
Part Five: Reporting to HQ: Here’s What We Know So Far

Raiders of the Lost Profits – Part Four: Pit of Snakes – Establishing Period of Restoration

Pit of Snakes – Establishing Period of Restoration
 
 
There is a difference between Period of Restoration and Period of Suspension just like there is a difference between a king snake and a king cobra.  And there are also total suspensionsand partial resumptions.
 
Although many factors may impact the Business Income evaluation period as the claim progresses (such as valid delays, covered Ordinance or Law, delay in payment by the carrier, contractor availability, negotiated POR), the Period of Restoration is defined as the reasonable amount of time it should take to repair or replace the damaged property (including business space even if not owned by the insured or covered under the insured’s policy).
 
Many times, the process of determining a final Period of Restoration (POR), the adjuster should always evaluate the initial POR based on the reasonable time period and state that in his or her report to HQ.  Some consideration for adjustment time should be acknowledged separately.  If additional time should be considered or if actual suspension period should be considered, make that a separate acknowledgment so our client, as well as your partners in the Business Interruption office, can tell the difference.
 
Don’t fall into the snake pit!  Define exactly what you mean when you outline the Period of Restoration
 
 
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Part Three: Search for the Grail:Covered Cause of Loss vs. Actual Cause of Loss
Part Four: Pit of Snakes:  Establishing Period of Restoration
Part Five: Reporting to HQ:  Here’s What We Know So Far
 
Written & Contributed by:

 

Raiders of the Lost Profits – Part Three: Search for the Grail

 
He chose poorly…
 
Covered Cause of Loss vs. Actual Cause of Loss
 
Or better yet, Covered Cause of Loss vs. Actual Cause of Loss vs. Perceived Cause of Loss.  This is what our adjuster must help us decipher.  The ‘covered’ causes of loss possible for business interruption/loss of income can range from slightly different to radically different than for your property assignment. That said, the business interruption/loss of income coverage is not necessarily actuated by the ‘covered’ cause of loss.  So…documenting both the covered and actual cause of loss is essential during the property adjuster’s inspection:
 
  • Take photos of ALL the physical damage – including that which is ‘not’ damaged and that which is ‘not’ covered property 
    • Business Interruption coverage can be actuated by a ‘covered’ cause of loss to the business space even if the structure itself is not covered under the insured’s policy
    • Conversely, if only BPP was damaged and there was no damage to the business space, coverage may be actuated only to the extent that of physical damage to BPP from a covered cause
  • Get the contact information for the landlord, and/or a lease
  • Note the use of the structure
  • Note any power outage, whether it is on or off-premises and inquire if the cause of the outage is known at the time of inspection – get the name of the insured’s power supplier
  • Note damage in the area.  Is damage widespread or confined to the insured’s specific area?  Was there a mandatory evacuation order in force during the interruption in business operation.  If so, inquire if a copy of the order is available
  • Note the existence of any multiple entities
  • For losses involving commercial or habitation rental properties, note units vacant at the time of the loss as well as any relocation activity for the tenants and make sure the unit designations reported as damaged match the insured’s unit reference
  • ASK THE INSURED WHY THEY BELIEVE THE BUSINESS IS SHUT DOWN
Observation and documentation of the business activity at the time of your inspection and inquiry about the activity between the loss date and your inspection will go a long way in making the Business Interruption process easier for us at the Business Interruption office, as well as easier for our client and for the insured.
 
 
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Raiders of the Lost Profit series:
Part Three: Search for the Grail:Covered Cause of Loss vs. Actual Cause of Loss
Part Four: Pit of Snakes:  Establishing Period of Restoration
Part Five: Reporting to HQ:  Here’s What We Know So Far


Written & Contributed by:

 

Raiders of the Lost Profits – Part Two: Introduction to Inspection for BI – Adventures in CAT Inspection

Introduction to Inspection for BI:
Adventures in CAT Inspection

 

The issues we deal with in every storm, with respect to Business Interruption, are Civil Authority, Off-Premises Power Outage and Spoilage, all of which sound innocuous but can get mired down in other issues such as wind vs. flood and covered cause of loss vs. actual cause of loss.

 

But it’s the storms with large scale devastation that sometimes finds us shouting, “CATs!  I hate CATs!”

Some of the additional issues we faced in both Katrina and Sandy were:

•Issues with insured type:  high profile attorney firms, CPA’s, plastic surgeons, bed & breakfasts, multi-location damage, multi-unit, multi-complex and multi-use habitation losses
•Other convoluting issues such as:  high profile agents, public adjusters, total loss of financial documentation
•Issues resulting from lack of communication with insured to manage expectations with respect to: Covered Cause of Loss, Period of Restoration, Extra Expense, Time Deductibles, and Coinsurance
•And finally, issues resulting from inadequate inspection and reporting

Yes, there are a lot of reasons to hate CATs, but BI doesn’t have to be one of them!!  And that begins with inspection of the loss.  Slightly different than inspection for daily claims, inspection for BI after a catastrophe is simultaneously focused on both physical and non-physical damage, actual causes of what might be multiple factors that shut down (either fully or partially) a business and what actuates coverage.

 

To help you complete your mission and move on to other important missions, we have developed a simple worksheet that can provide the basis for your reporting on Business Interruption and a tool we at the Business Interruption office can use to pick up the claim complete our part of the claim mission.
 
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Raiders of the Lost Profit series:
Part Two: Adventures in CAT Inspections
Part Three: Search for the Grail:Covered Cause of Loss vs. Actual Cause of Loss
Part Four: Pit of Snakes:  Establishing Period of Restoration
Part Five: Reporting to HQ:  Here’s What We Know So Far
 
 
Written & Contributed by:

Raiders of the Lost Profits – Part One: Secrets of Daily Loss Inspection

 
 
Introduction to Inspection for BI:  
Secrets of Daily Loss Inspection
 
 

 

Official mission documents arrive at your office via the W5 connection, loaded with code books and rolled up maps.  Being a cautious guy or gal, you peruse all the secret documents and determine that you will take the assignment.
 
Arriving at the marketplace, your first observation is that there is activity, people buying and selling in all the stalls but the one you’ve been sent to check out.  You approach the building and find the proprietor sweeping mud out of the front door.  Time for the rubber boots.
 
Wading through the water, the proprietor leads you to the back of the building to show you a hole in the roof you could throw a camel through.  Prepared, as always, you (yes, Our Hero) begin your inspection, which includes, of course, recording everything you can observe that might have an impact on the business that is normally conducted in that establishment.

 

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To assist you with the inspection of daily losses, we at the Business Interruption office have devised a list of some of the things that you should be observing and of which note should be taken in the course of your inspection. The Checklist for Daily Inspection is attached to this correspondence. Remember, whether the proprietor is covered for Business Income or not, you should always observe and make note of the information on the list because you (of course, Our Hero) are out first opportunity to obtain the initial information. Note that we have included a second page on the Checklist for listing units for rental property.

 

 
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Raiders of the Lost Profit series:
Part One: The Secrets of Daily Loss Inspection
Part Two: Adventures in CAT Inspections
Part Three: Search for the Grail:Covered Cause of Loss vs. Actual Cause of Loss
Part Four: Pit of Snakes:  Establishing Period of Restoration
Part Five: Reporting to HQ:  Here’s What We Know So Far
Written & Contributed by:
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Raiders of the Lost Profits Introduction: Introduction to Inspection for BI

 
Introduction to Inspection for BI
Don’t get caught in front of the rolling stone!
 
Arriving, on time, at the destination marked with an ‘X’ on the map included in the courier packet for the ‘very special assignment’, Our Hero (that’s you), fedora suavely tilted and measuring tape ready to be un-holstered, surveys the devastation in the marketplace.  
 
You (Our Hero) hand the head honcho your card (with aplomb, of course), then proceed to inspect the site.
 
Camera clicks fill the air, making a historical record of the front and the back of the risk.  You grab your trusty ladder and climb onto the roof, camera again clicking away.  Following the head honcho around you (for the last time – Our Hero) take the rubber band off an overstuffed and well-worn notebook, whip out your trusty pencil and start jotting down notes and measurements (okay, so you type it into your phone – go with me on this).  You dig up answers to questions about age of equipment, replacement opportunities, and ordering time for new trinkets and treasures to fill restock the marketplace.  
 
You, of course, make no commitment for coverage.
 
All your digging done, with tape measure re-holstered and notebook safely tucked in your belt, you prepare to depart.  But wait!  Something is amiss. This is a commercial loss.  There was nothing in the assignment packet that indicated any loss of commerce.  But what if there is no coverage?
 
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DOESN’T MATTER!  Our heroes (that’s YOU’all), should always inspect commercial risks with consideration for BUSINESS INCOME LOSS, whether the risk is covered or not, or whether the insured has made a claim for loss of income or not.
 
In this series, we will explore some of the simple steps to assuring the successful inspection of commercial risks that will be an invaluable service to Provencher clients and your Provencher Business Interruption Unit.
 
Our Business Interruption Unit (BIU) will handle all the heavy lifting after your initial inspection, such as:
 
•BI/LOI interview with insured to assist in document request and adjustment
•Provide insured with educational material about their coverage and instructional material about the process
•Maintain the physical and electronic files
•Maintain consistent contact with the insured and the client
•Request, collect, identify, process and qualify financial documentation from the insured, including qualification of Extra Expense
•Perform the financial analysis
•Adjust and determine the loss
•Report to the client
•Review analyses and determination with the insured, providing basis and instruction on interpretation of schedules
•Negotiate settlement.
•Provide support for appraisal and litigation
 
But, there are a few items that only our stalwart and heroic adjusters can determine and are responsible for:
•You must assess and document the ‘Covered’ Cause(s) of Loss
•You must establish the Period of Restoration (POR) and provide the basis by elements.  
•You must differentiate between POR and POS (Period of Suspension)  
•You are the first line of defense in the Control of Extra Expense
 
Attachments:
(you must click to advance after the first slide)
 
 
Raiders of the Lost Profit Series:
Introduction: Introduction to Inspection for BI
Part One: The Secrets of Daily Loss Inspection
Part Two: Adventures in CAT Inspections
Part Three: Search for the Grail:Covered Cause of Loss vs. Actual Cause of Loss
Part Four: Pit of Snakes:  Establishing Period of Restoration
Part Five: Reporting to HQ:  Here’s What We Know So Far
 
 
Written & Contributed by: