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 interruption and extra expense of the claim included a partial loss of existing orders with some renegotiated contracts after the loss. A thorough analysis on the financial impacts between the existing and renegotiated contract terms was performed to determine the lost revenue and expenses anticipated under the terms of the contracts.

The claim also involved the transfer of a portion of its production to other sites in neighboring cities. The transferred portion caused incremental freight which further investigation and documentation were needed to verify the reasonableness of the increase in costs and the changes in cost structure.

Business interruption loss calculations often get more complicated than expected with all the moving parts and the process requires careful consideration for accurate calculations. A&C’s qualified and experienced professionals are here to assist businesses & insurance companies in reaching a supportable lost profit analysis. If you have questions regarding this topic, please reach out to us at (469) 467-4660, or info@ahujaclark.com.