Brewery/restaurant business income claim - carrier using modeling method

Posted 2025-05-22

Commercial Soupers...talk to me about Business Income. Have you seen carriers take a hard approach to BI payments during claims? We are in the midst of a nasty fire claim situation with a brewery / restaurant that the carrier hired forensic accountants and actually used a modeling method for business income payments. They're shorting our insured about $10K a month based on geographic trends in that industry, regardless of what receipts the insured provides. Policy is based on ALS though. Also, anyone have any recommendations for classes regarding the nuances of BI?

Agent Replies (6)

Agent Reply

They aren't going to look at geographic trends, they are going to look at your insured's financial records and pay them their actual loss of income.

Agent Reply

Standard ISO language with nothing about trends and modeling.

Agent Reply

I would pull the policy and read if there is anything in there about trends, if not send it back to the adjuster asking for more money and why.

Agent Reply

Most carriers look at a 3 yr history of sale days and pay Net Income + Loss Of Use + Payroll depending on Coverages chosen

Agent Reply

True but this one is using business comps and modeling structures.

Agent Reply

Read the policy. The carrier has to pay claims based on guidelines in policy language.

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