USI’s comprehensive review and recommendations for adjusted BI limits can prevent uncovered losses well in excess of $1 million.
Modified Valuations 

USI evaluated the business income risk for an egg farmer that processed over 100 million dozen eggs per year and determined that their traditional approach to business income valuation did not address their actual risk exposure of $30 million, for which the policy only provided $15 million in limits.

Changes were made to the limit and duration based their risk profile, including: - The animal mortality recovery curve for laying hens - Interruption to the actual egg laying life cycle of each chicken - Assumption of adverse spot market prices during a loss recovery period - Review of Business Continuity Plan to determine potential loss mitigation factors

As a result of our determination, the company doubled their business income limit from $15 million to $30 million, all of which was paid a few months later when a fire destroyed the onsite egg processing plant.

Prevent Overpaying for Unneeded Coverage

USI evaluated the business income risk for an electrical products manufacturers’ representative firm with thirteen locations located throughout the Southeastern US. They had often questioned the large limits of business interruption purchased, particularly due to the premiums associated. They were told that the BI worksheet dictates what is required to purchase.

USI studied their contingency plans and changes were made to the limit and duration based on a review of conditions unique to their risk profile, including: - Maintaining and continuing sales from a remote basis - Ability to ship goods directly from manufacturers they represented to customers - Having multiple locations within realistic proximity to other locations

Following our determination, the company identified that the likelihood of lost revenue was very low. Coverage was not eliminated, but realistic limits were adjusted, resulting in premium savings of 25%.

  • Can prevent overpaying for unneeded coverage, commonly impacting between 5% and 10% of premium costs
  • Assistance in executing a comprehensive risk mitigation strategy
  • Exposure fully communicated to carriers leads to faster claim settlement

BI worksheets have proven to be an inadequate method of generating a proper valuation of a company’s lost income risk. They do not match with standard financial language or properly measure the unique time element risk that exists within each company, nor do they take into account any dependent property exposures, resulting in insufficient business income coverage limits.

USI’s Risk Management approach identifies and quantifies the financial values, the operational components in play, and the length of recovery time.

We review enterprise or partial enterprise exposures in 4 categories: Business Interruption, Extra Expenses, Loss from Dependent Properties, and Period of Indemnity.

Most polices only provide 30 days, which is insufficient in most cases. Most companies are not back to pre-loss income within 30 days of a structure being rebuilt, resulting in a significant uncovered loss.

USI will automatically request 365 days of Extended Period of Indemnity coverage on your behalf.