Organizations are experiencing disruption like never before as a result of the COVID-19 pandemic, and there is a lot of uncertainty surrounding what insurance will cover, what assistance is available and how to recover losses from an unprecedented event like this. As a business owner or executive, you may be asking yourself:

• What is my lost income projection and the lost income period under the circumstances?
• What expenses were incurred during the business interruption that should be included in the claim, such as those that would not have occurred during normal operations?
• Does my organization have available resources with the right experience to conduct the financial analysis required to increase my chances for a maximum recovery, if coverage exists?
• What documentation is required to accurately support the economic damages calculation submitted with my claim?

Mercadien can help organizations evaluate and calculate estimated economic losses suffered under a variety of circumstances through our business interruption claims assistance services. Our professionals work with impacted business owners and executives to assess and quantify their business income loss by:

• Inspecting and assessing the operational and financial records of the organization;
• Interviewing key members of leadership and management teams, vendors and customers;
• Compiling and analyzing industry data to evaluate the impact on profits;
• Performing a comparative analysis of budgeted to actual performance of the organization before, during and after the loss period;
• Evaluating certain unrelated events and economic conditions that may have impacted actual sales during the loss period;
• Calculating estimated economic damages attributable to the loss event; and
• Testifying to analytical procedures, observations and conclusions reached, as required.

The services above can serve to expedite the preparation of an insurance claim for the purpose of indemnifying the policyholder for its business income loss under applicable insurance policies.

Mercadien‘s experts can work closely with business owners, executives and their attorneys to identify and compile the relevant accounting and business records required to support the business interruption claim submitted to their insurance carrier for payment.  Our accountants apply knowledge of insurance coverages to identify and segregate applicable revenues and expenses to coincide with available coverages to facilitate the preparation of the claim and weigh-in on technical accounting and other business matters beyond the understanding of legal and insurance professionals.

When it comes to tackling income loss from business interruption issues, consider enlisting the help of Mercadien’s qualified professionals.  If you have an interest in discussing further, please let either my business partner, Kyle Neeld, CPA, or me know. Kyle can be reached at (609) 689-2360 or kneeld@mercadien.com and I can be reached at (609) 689-2319 or fpina@mercadien.com. 

DISCLAIMER: This advisory resource is for general information purposes only. It does not constitute business or tax advice, and may not be used and relied upon as a substitute for business or tax advice regarding a specific issue or problem. Advice should be obtained from a qualified accountant, tax practitioner or attorney licensed to practice in the jurisdiction where that advice is sought.