Adjusting A Commercial Loss
Adjusters must be aware of business interruption. Because of the nature of occupancy and exposures, commercial policies may have coverage for business interruption, including business income and extra expenses. Delays in evaluation and assessment of damage to the commercial structure by the adjuster can directly impact the time element of these claims and increase indemnity costs. One of the first essential steps in adjusting any loss is confirmation of policy information. Securing a valid copy of the declaration pages and entire policy form and endorsements will establish the ensured entity and other interested concerns, policy limits, valuation approach, insurance to value requirements, and endorsements that either extend or limit coverage. The adjuster must confirm the extent of insurable interests in the commercial property. The adjuster must identify the type of property ownership and its use to ensure proper evaluation of coverage and assessment of damage covered under a commercial policy. A party who sustains a financial or monetary loss when the commercial structure is damaged or destroyed may be considered to have an insurable interest. An insurable interest in a property is required before asserting a claim. The adjuster must identify the insurable interest under the policy and access claim payments to the extent of the insurable interest.