A Step-by-Step Guide to Completing the Business Income Worksheet (Part C)

Patti Mitrik

Patti Mitrik

Nancy Verduin

Nancy Verduin

Third in a series of articles on completing the business income worksheet.

Part C of the business income (BI) worksheet is the culmination of the discussion and development of BI exposure. It is here where critical answers to questions relating to the business continuity plan are applied:

  • How long will temporary quarters be needed?
    Based on past experiences and construction timeframes, rebuilding generally is going to take about 15 months, but for a hospital or other specialized facility, it can be 3 years. Actual timelines will depend on your operations and circumstances.
  • What is the period of restoration (until business is at the level it would have been, but for the loss), if no extra expense dollars are spent?
    A law firm may believe it can return to pre-loss level within 3 months, but a life science manufacturer may feel it needs 2 years. Again, timing will vary based on the type of risk.
  • What income will be retained during a loss?
    Consider that a loss at one location may impact 25% of revenue. Also factor in seasonality; peak season may impact 75% of revenue. Lastly, remember that a temporary location may take 3 months to get up and running, or it might be a manual operation.

While there is no right answer, as a rule, all elements of your business must be considered when developing your BI exposure. Ask the tough questions and make sure you understand the specifics as to how your business will survive a loss.

Once completed, the worksheet should be reviewed with each significant change in operation as well as annually to ensure you have adequate insurance.

Also in the blog series:
Determining Business Income Exposure: Preparation
A Step-by-Step Guide to Completing the Business Income Worksheet (Parts A & B)

 

Nancy Verduin, CPCU, APA, is Vice President, Centralized Underwriting Services at Chubb. Her responsibilities include conducting business income valuations as well as continuing educational courses for both producers and underwriters. She also teaches in-house CPCU courses and supports Chubb’s business process.

Patti Mitrik is Senior Premium Auditor in Chubb’s National Premium Audit Center. Her responsibilities include conducting business income valuations as well as continuing educational courses for both producers and underwriters. She also performs premium audits in support of the National Premium Audit Center.

 

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A Step-by-Step Guide to Completing the Business Income Worksheet (Parts A & B)

Patti Mitrik

Patti Mitrik

Nancy Verduin

Nancy Verduin

Second in a series of articles on completing the business income worksheet.

Now that you’ve assembled the right people, information and materials to complete your business income (BI) worksheet, what are the key issues to consider when completing it? Although the worksheet may vary from carrier to carrier, the forms tend to follow the same organization and seek similar information. Below is a step-by-step guide to completing each part of the worksheet. Continue reading

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Determining Business Income Exposure: Preparation

Patti Mitrik

Patti Mitrik

Nancy Verduin

Nancy Verduin

First in a series of articles on completing the business income worksheet.

A well-thought-out and documented business income (BI) worksheet is essential for determining the business income exposure for any given business. Organizations often underestimate how long it will take to get their operations back up and running (recovery) and don’t factor in the restoration period.

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Avoiding the Nightmare of a Stolen High-Value Vehicle

Jennifer Guerrini

Whether you are in the position of protecting a fleet of company cars or utility vehicles, or an executive’s prized car collection, mitigating risks against vehicle theft and/or vandalism is a high priority. No one wants to encounter a disheartened CEO, who has just witnessed the disappearance of one of their most prized possessions, or have to explain to management how an essential company vehicle was stolen. Fortunately, there are many ways to help prevent this from happening. Continue reading

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Storing High-Value Vehicles

Jennifer Guerrini

Keeping high-value vehicles (HVVs) out of harm’s way presents numerous challenges, but it is well worth the time and money. Whether it’s an executive fleet, a group of utility vehicles or bloodmobiles, or a CEO’s personal collection, these vehicles are precious to their drivers and the organization, and often constitute a significant financial or emotional investment.

Whether these vehicles are parked on site or at home, they may require an elevated level of facility and asset protection. When deciding how, when and where to store HVVs, consider the following time-tested best practices: Continue reading

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Will Your Building’s Roof Stand Up to Snow and Ice?

Erik Olsen

Although falling snow can make for a peaceful and picturesque scene, commercial building owners and managers have to guard against much harsher possibilities: snow-induced roof leaks or, in the most severe cases, building collapse.

Careful roof inspections and routine maintenance are important year-round, but become critical as temperatures drop and the potential for snow increases.
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Creating a Snow Removal Plan: The Essential Elements

Sheila Coppinger

Argos, Blanche and Caly, the first named winter storms of the season, are sending a clear warning to property owners and managers: Time to dust off the snow removal plan. If you are responsible for your organization’s snow removal planning, taking steps now can help you protect those tasked with snow removal as well as those who use your property.

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Contracts: An Underappreciated Snow Removal Tool

Jay TaylorWinter is coming, and with it comes snow: beautiful to some, but a potential liability to others. For building owners and property managers, snow means constant vigilance to prevent falls and other snow-related accidents. These injuries can pose significant liability.

Who is financially liable for snow-related accidents—your firm or the party that does the work? The answer depends largely on your contracts. A properly written contract can shift much of the responsibility to where it belongs most: on the snow remover.

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Plan Ahead for Winter Driving

Keith Bain

 

Before you know it, winter will be here and along with it the hazards of winter driving. Safely navigating through the snow and ice takes a combination of planning ahead and making good decisions. As you prepare to drive this winter, here are a few reminders to help you avoid problems on the road.

 

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Preparing for an Aging Hospitality Workforce

Juan Mascaro

The aging American workplace is emerging as a key issue for the hospitality industry.  Recent reports indicate that the population of people over 65 is expected to increase to 21.7% of the population by 2040.  As employee demographics in the hospitality industry follow suit, hotels should take a proactive approach to address risk management issues related to this shift in workforce population.

 

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