Advisor. Consultant. Prognosticator. Trusted friend. Today's insurance broker wears many hats while assuring that his or her client has the best protection possible. As business insurance grows more complex and the stakes get higher every day, never has this service been more crucial—or the consequences for failing to provide it, greater. This issue of Adjusting Today examines two areas in which a broker's expertise can be invaluable to a client.
Our first piece discusses how business income (business interruption) insurance can be critical not only to a company's prosperity, but to its very survival.
This post-loss perspective offers unusual insight into a coverage that too often doesn't get the attention it deserves.
Complementing this article is an equally informative piece on the broker's role in settling a claim, by Richard Niestrom of the HNI Company in Milwaukee. Having had experience as both a broker and professional loss consultant, Niestrom suggests how the broker can play a key role in helping a client recover from a loss, and why that role is so important in the broker-client relationship.
We think you'll find it interesting and valuable reading.
—Sheila E. Salvatore, Editor
A metals manufacturer suffered a fire loss to key machinery in its manufacturing process. Although operations were interrupted for less than three weeks, the company incurred more than $1.5 million in lost earnings and extra expenses.
Fortunately, this manufacturer—with due credit to their insurance broker—had purchased adequate business interruption insurance before the potentially devastating event occurred. Equally important, perhaps, the client sought outside professional assistance that proved to be critical
when an impasse was reached with the carrier over the true value of the claim.
Many companies are not as fortunate as this one. Because when it comes to property insurance, the real and personal property are often the principal concerns. In fact, the key to surviving a disaster may very well depend on the firm's loss of income protection.
Over the years this coverage has evolved and undergone several name changes—being known