Business Interruption Insurance
Financial Concepts

Business interruption insurance claim preparation requires certain financial statements. This page reviews the essential aspects and viewpoints required for proper claim preparation. It is impossible to properly calculate business interruption coverage or quantify a loss without reference to the financial statements and records of an entity. Because of this and the fact that modern business practices have brought with them increasingly complex organizational structures, financial reporting methods and accounting systems, professional accounting assistance is often required.

For business interruption analysis, the most important of the financial statements is the income or profit and loss statement since it measures the profitability of a business.

No two business entities are identical and so the income statement may go under a different name. Also, the level of detailed information reported may vary from entity to entity and a request for more detail over and above that reported in the published statement will likely be necessary.