Leonard Theran, SPPA, principal of Professional Loss Adjusters, Inc. recently presented to a group of insurance industry professionals from across the country at the First Party Claims Conference (FPCC), which was held in Warwick, Rhode Island. The topic was “Major Business Interruption Cases—Made Simple.” Richard Lewis, Esq., an attorney with Reed Smith, LLP, one of the leading experts in Business lnterruption law in the country, was co-presenter.
Just What Is Business Interruption Insurance?
Business Interruption Insurance (BII), also known as business income insurance, covers the loss of income that a business suffers after a disaster (fire, flood, tornado, hurricane, collapse, explosion, etc.) while its facility is either closed as a result of the disaster or in the process of being rebuilt following the disaster. A property insurance policy covers only the physical damage to the business’ structure and contents, while the additional coverage outlined in a business interruption policy covers the profits that would have been earned had the business remained open during that time. This extra policy provision is designed to put a business in the same financial position it would have been had no loss occurred.
The presentation covered the six most common issues arising in large commercial business interruption losses. The objective of the presentation was to provide attendees with the working knowledge of these issues and to allow them to assist their clients in successfully collecting on business interruption claims. The six issues presented were:Property Damage Triggering Business Income Coverage, The Period of Restoration, Arguments for Termination or Extension of the Period of Restoration, Proving the Business Income Loss, Considering the Wider Effects of Loss and Stacking Applicable Coverage. Lewis and Theran discussed the 20 major legal cases that concerned these issues.
Leonard Theran, SPPA, earned a BS degree in Mechanical Engineering from MIT and an MBA from Stanford University. He has more than 35 years insurance adjusting experience and has also earned the SPPA (Senior Professional Public Adjuster) designation. Because he has also been involved in the management of several high-tech companies, Len has a unique perspective when adjusting industrial losses. He is past-President of the Massachusetts Association of Public Insurance Adjusters (MAPIA) and has served on the Board of Directors of the National Association of Public Insurance Adjusters (NAPIA) and CAI-New Hampshire. He has also qualified as an expert witness and has been a featured speaker before several organizations including FPCC, the Risk and Insurance Management Society, the Institute of Real Estate Management and Lorman Education Services.
Professional Loss Adjusters, Inc. (PLA) is a team of experienced Public Adjusters who represent homeowners, property owners, commercial and industrial establishments, social organizations and institutions in the preparation and substantiation of an insurance claim. PLA adjusts virtually every kind of property loss, including buildings, personal property, business interruption, extra expense, loss of rent, and additional living expense. They adjust losses resulting from any insured cause, including fire, hurricane, windstorm, flood, collapse, theft, and/or vandalism. PLA has offices throughout Massachusetts and Maine, and is licensed in Connecticut, Florida, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, New Hampshire, New Jersey, North Carolina, Rhode Island, South Carolina, Texas, and Vermont. PLA also has affiliates throughout the United States, enabling the settling of claims in many other locations.