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Business interruption claims – Provide evidence of lost sales — not just lost production


SKU: ADVmj121. Category: .


Abstract: Whether caused by negligence, breach of contract, terrorism or “acts of God,” the temporary interruption of a business can be financially damaging. When a company tries to recoup its losses from its insurer or the responsible party, it needs solid, comprehensive expert testimony — or it risks losing its claim. This article examines a case in which a metals manufacturer sued its insurer when, following equipment failure, it wasn’t satisfied with the progress of its claim for losses. But its case suffered when it didn’t identify existing or potential sales, or produce evidence showing it could sell existing inventory. A sidebar shows how CPAs calculate lost sales.

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