Business Interruption
Business interruption claims often involve complex financial issues requiring specialized analysis to determine what the business would have earned but for the insured event. We assist insureds, insurers, and legal counsel in quantifying business interruption losses with clarity, objectivity, and rigor.
Our services focus on the measurement of lost profits, continuing and non-continuing costs, extra expenses, and other financial impacts arising from operational disruptions such as property damage, supply chain interruptions, cyber incidents, construction delays, or liability-related shutdowns. Each analysis is tailored to the specific policy language, facts, and economic circumstances of the insured.
Whether engaged as a consulting expert or testifying expert, we provide well-supported, defensible quantifications designed to facilitate resolution through settlement discussions or to withstand scrutiny in litigation, arbitration, or appraisal proceedings.
Our business interruption services include:
Quantification of lost profits and gross earnings
Analysis of continuing and non-continuing expenses
Measurement of extra expenses and mitigation costs
Business interruption and extended period of indemnity claims
Review and interpretation of policy terms and coverage issues
Independent expert reports and litigation or settlement discussions support
Selected representative experience includes:
Local insurance provider – Quantified and presented the business income claim of a local insurance company to their insurer following a ransomware attack impacting their ability to underwrite policies and resulting in reputational damage. The claim was settled for the amount presented in our report.
Clothing retail chain – Reviewed and commented on a claim for lost profits by a national clothing retail chain resulting from a system failure of their logistics provider impacting inventory levels at the stores and fulfillment of e-commerce orders. We analyzed market trends and various KPIs such as traffic and conversion rates to test the assumptions presented in the claim.
Hotel chain – Quantified the loss of business income resulting from a cyber-attack that blocked access to the hotel's online booking website. We conducted market research and analyzed comparable occupancy statistics and daily rates in the area to project room revenues during the loss period.
Full-service law firm – Quantified the loss of business income resulting from a ransomware attack which blocked access to the firm's servers and timekeeping software. The main issue was employee utilization and the potential ability to make-up billable hours once servers were restored.
Large quarry operator and stone manufacturer – Reviewed an insured's claim for business income loss related to unproductive labour as a result of a ransomware attack which blocked access to the insured's servers. The main issue was to segregate unproductive labour related to the cyber-attack from unproductive labour due to other factors (Covid-19 pandemic).
Fiberboard manufacturer – Quantification of lost profits of a manufacturer of fiberboard and other wood-based products following a fire at one of its manufacturing facilities. The main issues related to production capacity and fluctuating market prices.
Pulp and paper mill – Quantification of lost profits of a pulp and paper mill resulting from shutdown of equipment. The main issue related to loss mitigation.