How to Prepare for the Hurricane Season and Avoid Being Underinsured for Business Interruption Coverage,and a Special Section on “What to Do If You Have Loss of Income from the BP Oil Spill”

Most chief financial officers (CFOs) and risk managers have an understanding of their property and liability insurance needs and are comfortable purchasing coverage that protects their companies from a loss due to an insured peril. However, it has been our experience that their comfort level declines dramatically when it comes to business interruption coverage and limits. The uncertainty surrounding business interruption coverage, extensions of coverage, and respective limits of that coverage consistently results in many organizations finding themselves underinsured and short of cash when faced with a major loss. How can you, the CFO or risk manager, avoid that day of reckoning when your company cannot afford the economic consequences of an underinsured loss? Plus, what to do if you have a business income loss from the Gulf Oil Spill.