Effect of Post-Loss Economic Factors in Measuring Business Interruption Losses: An Insured's and Insurer's Perspective

Business interruption insurance, at its core, is intended to place the insured in the position it would have been in had it not suffered a loss.1 Although an insured’s loss may not have a far reaching economic impact, there are circumstances from which a loss to a single insured location can impact a region, or even a national economic marketplace. And, whereas a single location loss can, but usually does not, have a wide-impact on the surrounding economic landscape, hurricanes, earthquakes, wild fires, terrorist attacks, and even man-made environ- mental disasters that often cause significant, widespread physical loss and damage will typically have an effect on the regional, or even national, economy.