Adjusting Today

Adjusting Today is provided free of charge as a public service by Adjusters International, Inc., disaster recovery consultants. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases.

Adjusting Today helps insurance agents, brokers, risk managers, attorneys, business owners and other business professionals keep current with critical issues affecting property damage and business interruption claims. Articles are written from a policyholder’s perspective and include real-life examples intended to improve disaster preparedness.

Adjusting Today Basis for Institutes CE Courses

The Institutes, the leader in providing knowledge solutions for risk management and the property casualty insurance industry, offers continuing education courses based on technical information compiled from issues of Adjusting Today. The courses — “Valuing a Property Insurance Claim” and “Natural Disasters: Coverage Issues” — include seven modules each and are approved for credit by insurance departments in most states. They are offered to property insurance producers, adjusters or both, depending on the state, for up to three continuing education credit hours. More information is available at

Adjusting Today *Print Edition:

*Available in hard copy and PDF formats

Issue #3048
Adjusting Today - Business Interruption Coverage Times Three: Business Interruption Coverage Times Three

Business interruption (BI) claims have long been both crucial to a company’s recovery and among the most intricate insurance losses to adjust. Until recently, BI protection came mostly under the firm’s commercial property or equipment breakdown policies.

Issue #3047
Adjusting Today - Being a Named or Additional Insured Not Always Necessary for Coverage: Being a Named or Additional Insured Not Always Necessary for Coverage

True or false: the only parties that can receive proceeds from an insurance claim settlement are those the policy specifically identifies as named or additional insureds. Widespread belief might say this statement is true. But it is not always. There are circumstances under which modern insurance policies can apply coverage to non-insureds. The most prominent of these are discussed in this issue of Adjusting Today, authored by Donald Malecki.

Issue #3046
Adjusting Today - Understanding Improvements and Betterments: Understanding Improvements and Betterments

Insurance expert Robert Prahl addresses how courts have ruled in relevant cases regarding insurance coverage and lease provisions while outlining the applicable language found in standard policy forms.

Issue #3045
Adjusting Today - Vacancy/Occupancy Clauses; Protective Safeguards Endorsements: Vacancy/Occupancy Clauses; Protective Safeguards Endorsements

In this issue of Adjusting Today, author Robert J. Prahl, CPCU, examines the subjects of vacancy/occupancy clauses and protective safeguards endorsements in property insurance. ...

Issue #3044
Adjusting Today - Business Personal Property of Others: Business Personal Property of Others

If one ponders the types of businesses involved in bailments, such as for leasing, safekeeping, or for performing some kind of cleaning, repairing or servicing of personal property, it is an infinite number. ...

Issue #3043
Adjusting Today - Sue and Labor Clauses: Sue and Labor Clauses

In this issue of Adjusting Today, well-known insurance expert Donald S. Malecki, CPCU, examines policy provisions for mitigating and/or expediting expense, especially their root in the historic sue and labor clause. ...

Issue #3042
Adjusting Today - Difference in Conditions Coverage: Difference in Conditions Coverage

Difference in Conditions coverage: who needs it? Any business that needs more protection than that provided by standard property insurance, especially with regard to the flood and earthquake ...

Issue #3041
Adjusting Today - Earthquake Insurance: Earthquake Insurance

As this issue of Adjusting Today was being prepared, the earthquake and resulting tsunami of March 2011 struck Japan. That concurrence put an exclamation point on what already was the theme of this edition ...

Issue #3040
Adjusting Today - Coinsurance/Insurance to Value Revisited: Coinsurance/Insurance to Value Revisited

The need to adequately insure property, whether it be commercial or personal, is one of the most fundamental concepts of insurance. Its importance is acknowledged by insureds, agents ...

Issue #3039
Adjusting Today - Insurance Coverage For Collapse: Insurance Coverage For Collapse

Webster's lead definition of "collapse" seems so clear and straightforward as to preclude the possibility of such an event being debatable. Yet in the field of property insurance, few concepts have been as open to interpretation....

Issue #3038
Adjusting Today - Increased Cost of Construction Coverage: Increased Cost of Construction Coverage

Your business, including its landmark headquarters building, has been devastated by fire. Rebuilding will be a daunting task, but as you begin the process, you feel some comfort ...

Issue #3037
Adjusting Today - Builder’s Risk Insurance: Builder’s Risk Insurance

Moving into a newly constructed or renovated building is an exciting time. It’s the culmination of a complex undertaking, involving a spectrum of activity from land acquisition to ...

Issue #3036
Adjusting Today - Margin Clauses Making Agreed Value Options Extinct!: Margin Clauses Making Agreed Value Options Extinct!

As disasters and their ramifications have dominated property insurance headlines in recent years, a less-publicized development has been the gradual implementation of the “margin clause” on commercial property ...

Issue #3035
Adjusting Today - Equipment Breakdown Insurance: Equipment Breakdown Insurance

Equipment Breakdown Insurance: Few Coverages Create as Much Confusion and Misunderstanding. Even the most seasoned insurance professional will admit that the depth and complexity of equipment breakdown policies ...

Issue #3034
Adjusting Today - Soft Cost or Delay in Opening: Soft Cost or Delay in Opening

This edition of Adjusting Today features an in-depth article that addresses the all-important topic of soft cost or delay in start-up coverage. Author Tony D´Amico has more than 30 years ...

Issue #3033
Adjusting Today - Flood: Flood

Each year floodwaters will rise and numerous properties will be destroyed. Flooding can occur just about anywhere, and other than fire, it is the most common widespread disaster. ...

Issue #3032
Adjusting Today - Overhead and Profit: Overhead and Profit

The inclusion of General Contractor Overhead & Profit in property damage insurance claims is traditional. Overhead and profit is...

Issue #3031
Adjusting Today - The Effect of the Sale of a Commercial Property on a Pending Insurance Claim: The Effect of the Sale of a Commercial Property on a Pending Insurance Claim

When a business suffers damage from a fire, storm or similar disaster, its otherwise normal operations can be seriously disrupted. When the loss takes place while the business is being sold and bought, or recovering from a loss, disruptions of another type arise in the form of questions as to how and whose insurance will cover the damages.

Issue #3030
Adjusting Today - Pair, Set and Match: Pair, Set and Match

It should come as no surprise that when a hotel is damaged by a disaster, it is expected that replacement furnishings match throughout the hotel. As a result ...

Issue #3029
Adjusting Today - The Length of the Road Back from Disaster: The Length of the Road Back from Disaster

How long does a business suffer the consequences after a disaster strikes and how long should the insurer pay a business income loss? There are four major, distinct ...

Issue #3028
Adjusting Today - How to Make the Most of an Underinsured Loss: How to Make the Most of an Underinsured Loss

After suffering devastating property damage, perhaps the most unwelcome news for policyholders is learning that they do not have enough insurance. Ten important avenues that can be explored ...

Issue #3027
Adjusting Today - Hurricanes and Windstorm Coverage: Hurricanes and Windstorm Coverage

Understanding your insurance policy before a disaster strikes is essential to protecting your organization and ensuring a fast recovery. Having contingency plans established in advance will help you ...

Issue #3026
Adjusting Today - Functional Replacement Cost: Functional Replacement Cost

For older structures with ornate or obsolete features, replacement cost coverage to replace these with like, kind, and quality can be exorbitantly expensive. In order to make coverage ...

Issue #3025
Adjusting Today - Valuable Papers and Records: Valuable Papers and Records

The loss of research documentation, accounts payable, and all forms of valuable papers, records, books and other printed media, could be devastating to an organization. Whether you choose ...

Issue #3023
Adjusting Today - Salvage: Salvage

Fire, flood, earthquake, hurricane…most often the property is only partially damaged. While some may view the damaged property as useless, it can hold value and provide an opportunity ...

Issue #3022
Adjusting Today - Concurrent Causation: Concurrent Causation

The concept of concurrent causation exclusions in property insurance policies began after a series of California court rulings found that even though an event, such as earthquake, was ...

Issue #3021
Adjusting Today - Agreed Value Clause: Agreed Value Clause

The Agreed Value Option is an excellent tool for policy holders to avoid the penalty of the coinsurance clause in both property and business income insurance. It can ...

Issue #3020
Adjusting Today - Business Income Insurance Q&A: Business Income Insurance Q&A

Business Income Insurance following a disaster can be critical to an organizations survival. A previous Adjusting Today business income article generated a steady flow of questions; six of ...

Issue #3017
Adjusting Today - Property Insurance Claims: Property Insurance Claims

Following disaster damage just having insurance coverage in place does not guarantee that the property insurance and business interruption claims will be fully reimbursed. The final settlement can ...

Issue #3016
Adjusting Today - Disaster Recovery Planning: Disaster Recovery Planning

As professional loss consultants, Adjusters International has assisted numerous organizations that have suffered losses from natural and man-made disasters. Some recover; some do not. Those who anticipate what ...

Issue #3015
Adjusting Today - Multi-Family Complexes (Apartment and Condo): Multi-Family Complexes (Apartment and Condo)

Given the myriad of conditions, relationships and exposures that can exist with multi-family complexes, making sure the right insurance program is in place merits foresight and planning. ...

Issue #3015
Adjusting Today - Hail Damage Can Create Difficult Insurance Claims: Hail Damage Can Create Difficult Insurance Claims

One potentially serious, yet difficult-to-detect, type of disasters that can strike an apartment or condominium complex is a hail storm. Property owners often don’t even realize that their ...

Issue #3013
Adjusting Today - Valuing Business Income Exposures: Valuing Business Income Exposures

It is a fairly simple matter to arrange appropriate business income coverage for a business, with one location—a store or factory, an office or perhaps a warehouse. However, ...

Issue #3012
Adjusting Today - Proving an Insured Loss: Policyholders Need Experts Too: Proving an Insured Loss: Policyholders Need Experts Too

Qualified professional experts can make a significant difference in the amount of a property damage settlement and the speed with which it is reached. Too many organizations fail ...

Issue #3011
Adjusting Today - Disasters Raising Questions of Insurance Adequacy: Disasters Raising Questions of Insurance Adequacy

Recent catastrophic disasters refocused insurance professionals everywhere when serious insurance inadequacy became apparent. This discussion explores some of the important areas of risk management...

Issue #3010
Adjusting Today - Debris Removal and Pollution Damage: Debris Removal and Pollution Damage

When calculating the many costs involved following destruction or damage, keep in mind that the costs of debris removal and the cleanup of possible pollution removal are in ...

Issue #3009
Adjusting Today - Ordinance or Law Coverage: Ordinance or Law Coverage

After a severe property loss, the first shock comes in learning that rebuilding a damaged structure so that it conforms to the latest building codes can add substantially ...

Issue #3008
Adjusting Today - Business Income Insurance: Business Income Insurance

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 ...

Issue #3007
Adjusting Today - Subrogation: Subrogation

A property insurance settlement would not be properly allocated if the policy holder was able to collect from their insurance company and then through litigation, also collect from ...

Issue #3006
Adjusting Today - The Valuation Gap: The Valuation Gap

Following a disaster property owners often discover that: Their property coverages are less than the cost to replace the property. Estimates used when purchasing business income insurance are ...

Issue #3005
Adjusting Today - Sometimes It’s What the Policy Doesn’t Say That Counts!: Sometimes It’s What the Policy Doesn’t Say That Counts!

This edition contains two articles. The first part discusses employing broader language in an insurance policy. And the second part delves into the replacement cost claim.

Issue #3004
Adjusting Today - Expecting the Unexpected Part of the Unexpected: Expecting the Unexpected Part of the Unexpected

Surviving Disasters: Natural or Otherwise Most property owners too often rate their coverage on its cost rather than by taking the claims perspective of how the policy would ...

Issue #3003
Adjusting Today - Risk Assessment: Risk Assessment

The objective of risk assessment is to recognize problems that might be encountered in the event of a property damage loss. By reviewing potential loss scenarios and the ...

Issue #3002
Adjusting Today - The Extended Period of Indemnity Endorsement: The Extended Period of Indemnity Endorsement

One of the most helpful endorsements to a business income policy is the Extended Period of Indemnity Endorsement which extends the loss period beyond the time required to ...

Issue #3002
Adjusting Today - Coinsurance: Coinsurance

Company XYZ had been growing rapidly. Company officials believed they had comprehensive insurance coverage. But when a substantial loss took place, they were able to recover only a ...

Adjusting Today *E-Edition:

*Avaiable only in PDF Format

Issue #2006 E-Edition
Adjusting Today - Contingent Dependent Properties Insurance: Contingent Dependent Properties Insurance

Whether it's to supply raw materials or component parts, or buy their products or services, most companies depend on other organizations to operate successfully. This is particularly felt when a key supplier or customer sustains a property loss and the company's operations are so specialized that it is very difficult, time-consuming or even impossible to find substitutes. That supplier or customer could be the company's only viable option.

Issue #2005 E-Edition
Adjusting Today - Be Aware of Recent Revisions to ISO Commercial Property Coverage Forms: Be Aware of Recent Revisions to ISO Commercial Property Coverage Forms

The Insurance Services Office (ISO) has made revisions to two commercial property insurance forms — the Building and Personal Property Form (CP 00 10) and the Causes of Loss – Special Form (CP 10 20).

Issue #2004 E-Edition
Adjusting Today - Cosmetic Damage Exclusion Stirs Controversy: Cosmetic Damage Exclusion Stirs Controversy

This E-Edition of Adjusting Today offers insight into the emerging issue of cosmetic damage exclusions in property insurance policies.

Issue #2003 E-Edition
Adjusting Today - Actual Cash Value Depreciation Deduction and the Broad Evidence Rule: Actual Cash Value Depreciation Deduction and the Broad Evidence Rule

Central to the adjustment of a property insurance loss is the rule by which the loss is valued. In the insurance field, few rules have been subjected to as many definitions, redefinitions and interpretations as this one.

Issue #2002 E-Edition
Adjusting Today - Contingent Business Interruption Issues Continue Following Disasters in Japan: Contingent Business Interruption Issues Continue Following Disasters in Japan

The recent earthquake and tsunami that struck Japan, caused loss of life and property damage of untold proportions. It will take years if not decades for this nation to recover from the catastrophic losses suffered by its people and the land.

Issue #2001 E-Edition
Adjusting Today - Japan Earthquake a Wake-Up Call for Contingent Business Interruption Coverage: Japan Earthquake a Wake-Up Call for Contingent Business Interruption Coverage

Company XYZ had been growing rapidly. Company officials believed they had comprehensive insurance coverage. But when a substantial loss took place, they were able to recover only a ...