WHAT DO I NEED TO SUPPLY TO PROVE MY LOSS?
Businesses will most likely have to supply supporting documentation such as the business history, revenue status, and expense status.
The business history would encompass the following:
How the physical damage effected the business fiscal year end, the actual property damage, inventory or goods that were produced on site, any services provided, how many employees are on staff, if there are any suppliers or customers, and what the operating hours of the business are.
The revenue for the business can be shown via the following:
- Tax returns
- Bank statements
- Monthly income statements
- Sales tax returns
- Accounting software or books
- Sales records
- Sales receipts
- Sales forecasts
- Business plans
The expenses for the business can be shown via the following:
- Production data before the loss
- Production data during the loss
- Production data after the loss
- Payroll and Payroll tax records for employees
- Lease agreements
- Franchise agreements
- Utility bills
- Loan agreements
- Estimates and receipts from contractors to repair the work
Since there are many different factors that can affect a business interruption claim you need to be careful about what you are covered for in your policy. Things like loss of market, employee salaries, depreciation, and sales trends make a difference when filing a claim.