Commercial Litigation and Damages

Business Interruption and Lost Earnings Claims

Business Interruption and Lost Earnings Claims

Business interruption insurance covers loss of profit when a business experiences damage to covered facilities from a covered peril, resulting in the inability to fully execute the firm’s business. Most business interruption coverage is written on an “actual loss sustained” basis, meaning that measuring the associated loss of earnings requires the comparison of actual earnings during the period of loss to the expected earnings had no loss occurred, also called the but-for earnings. Disputes between insured and insurer can arise when the parties disagree on the size of the covered loss. Many such disputes center on the assessment of the but-for earnings and how that relates to any forecasts the firm might have had.

NERA experts have significant experience and expertise in the accounting and economic analyses that can provide independent, fact-based assessments useful in resolving business interruption disputes. Our business interruption experts include accountants adept at analyzing historical accounting records, company work papers, and insurer work papers to provide a full understanding of the insurer’s investigation. We have deep industry knowledge and sophisticated quantitative skills to develop analyses that can disentangle the effects of multiple forces on expected earnings, and can quantify loss mitigation and other related issues. The result is a forecast model which rests on credible, fact-based assessments rather than intuition and straightforward extrapolation.

Name Title Location Phone Email
Dr. Christian Dippon Managing Director
Chair of NERA's Global Energy, Environment, Communications & Infrastructure Practice
Washington, DC
New York City
+1 202 466 9270
+1 212 345 1732
christian.dippon@nera.com
Bradley A. Heys Managing Director Toronto
New York City
+1 416 868 7312
+1 212 345 3000
brad.heys@nera.com
Dr. Hiroaki Ishigaki Managing Director Tokyo +81 3 6871 7041 hiroaki.ishigaki@nera.com
Dr. Vinita Juneja Managing Director
Chair of NERA's White Collar, Investigations and Enforcement Practice
New York City
London
Toronto
+1 212 345 3148
+44 20 7659 8618
+1 416 868 7314
vinita.juneja@nera.com
Dr. Denise Neumann Martin Managing Director Miami +1 305 808 7880 denise.martin@nera.com
Dr. Christine Siegwarth Meyer Managing Director
Chair of NERA's Intellectual Property Practice
White Plains, NY +1 914 448 4119 christine.meyer@nera.com
Dr. Ramsey Shehadeh Managing Director Washington, DC +1 212 345 6089 ramsey.shehadeh@nera.com
Ralph Meghames Associate Director Paris
Milan
+33 1 70 75 01 89
+39 02 305771
ralph.meghames@nera.com
Bryan Ray Associate Director White Plains, NY +1 914 448 4004 bryan.ray@nera.com
Mark L. Berenblut Affiliated Consultant Toronto
New York City
London
+1 416 868 7311
+1 917 475 0020
+44 20 3769 1096
mark.berenblut.affiliate@nera.com
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