BUSINESS INTERRUPTION

OverMont assists clients with financial issues arising from man-made or natural disasters that have severely interrupted business operations.  Natural catastrophes such as fires, floods, and high winds can be highly disruptive events leading to substantial economic loss.  Operational disruptions and economic losses may also arise as a result of a breach of contract, tort, fraud, condemnation, misappropriation of intellectual property, or an antitrust violation.

 

OverMont professionals possess the expertise and experience necessary to identify and quantify the additional costs incurred and income lost as a result of any such business interruption.  If required, we are also uniquely positioned to provide credible and understandable testimony regarding the economic issues identified during the claims process.

 

Identification of Additional Costs:  OverMont provides clients with a detailed account of all actual and projected expenses that were incurred solely as a result of the business interruption event.  This identification process includes, but is not limited to, an analysis of additional costs incurred as a result of damages to facilities, equipment, inventory, materials and any other assets and the cost of a temporary location and associated moving costs.

 

Analysis of Lost Income:  OverMont helps clients identify, establish, and effectively demonstrate reasonable and credible profit losses when filing business interruption claims, either for insurance purposes or litigation.  This often requires a holistic comparative view of the business situation prior to and after the business interruption event, and a realistic and reasonable projection of how the interruption will impact the damaged business in the future.  Our detailed analysis of lost income includes the following elements:

 

  1. Defining the business interruption event and its impact on the subject business;
  2. Analyzing the economic situation before the business interruption event;
  3. Demonstrating the most likely future economic situation but-for the business interruption event;
  4. Establishing the most likely future economic situation after the business interruption event;
  5. Demonstrating the difference between the most likely future situation but-for the business interruption event and the most likely future situation after the business interruption event; and
  6. Calculating the net present-value of the difference between the two projections