In a prior blog post, we discussed the Dictiomatic case, which illustrated a number of principles and occurrences that often arise when calculating business interruption loss claims. Today, we will narrow in on one of the more common hurdles faced when performing loss calculations: what to do when multiple factors, not solely the covered loss [...]
Restaurants are greatly impacted by the COVID-19 crisis. Most are impacted negatively at least in the early times of Coronavirus while some restaurants unexpectedly outperform during these times. The differences are driven by factors including but not limited to types of restaurants, local competition, neighborhoods, and local restriction orders. Business interruption and lost profits calculation [...]
Although forgiveness for Paycheck Protection Program (PPP) loans is a foremost topic on the minds of borrowers, there are several reasons why borrowers should not rush to apply for forgiveness. Long-expected FAQs expected to clarify many PPP-related issues are still awaited from the U.S. Small Business Administration (SBA) and Treasury. In addition, the loan forgiveness [...]
The state of Texas levies sales tax on sale of tangible personal property and enumerated taxable services. Taxable services are defined in section 151.0101. Tangible personal property is defined on code section 151.009 as “the personal property that can be seen, weighed, measured, felt or touched or that is perceptible to the senses in any [...]
Many small businesses have inquired about whether they can apply for PPP loan forgiveness before their covered period expires, new Paycheck Protection Program (PPP) guidance released on June 26, 2020 declares that PPP recipients can apply for loan forgiveness early but that doing so could cost them money.The new interim final rule says that if [...]
In a previous blog post, we touched on the standards of proof for business interruption loss claims before the courts. Continuing along this same line of thought, there is one business interruption case in particular, Dictiomatic, Inc. v. US Fid. & Guar. Co., which brought together a number of applicable concepts to provide a pretty [...]
A business interruption loss claim is a covered event under a commercial insurance policy that includes business interruption coverage. Under such a policy, should the business experience a qualified damaging event, the insurer will pay for the actual loss of business income sustained from the necessary suspension of operations due to the event per the [...]
A&C was retained by the insurance company to assist in evaluating economic damages sustained by manufacturing plants of a truss manufacturer due to a tornado. Production was halted and the manufacturer had to outsource job orders to have them fulfilled on time and minimize the loss and the period of restoration. The measurement of business [...]
Business interruption or other lost profits situations can happen to franchised businesses. These losses can actually be easier to calculate than those of single location businesses due to more information available from other franchised locations to perform damage calculations. The use of this type of information is often referred to as the Yardstick approach or [...]
As we touched on in a previous blog post, “What is Business Interruption? And What is Business Interruption Insurance?,” in order for business interruption insurance to kick-in, a loss claim must tick three boxes: there must be an actual loss of income a necessary suspension of operations to some degree must have occurred the cause [...]
