Illustration for article titled COVID-19 and Business Interruption Insurance: Documents Needed to Support a Claim

As previously discussed in A&C’s article on COVID-19 and Business Interruption Insurance: Frequently Asked Questions, COVID-19, or Coronavirus, has impacted businesses worldwide. As a company analyzes and documents a business income loss claim, a critical aspect involves an examination of the insurance policy. The policy defines areas of coverage that will indemnify the loss, however it does not describe how to document your loss. This article covers some best practices to document your claim.


What documents are necessary to document a claim?

Necessary documents vary from policy to policy. Business interruption insurance usually covers “Business Income and Extra Expense”. Business income is generally defined as net profit or loss before income taxes that would have been earned or incurred, and continuing normal operating expenses incurred. “Extra Expense” often means necessary expenses you incur during the “period of restoration” that you would not have incurred. Any information used for calculation of the loss amount should be supported by documentation to support the accuracy of the claim.


Necessary documents may include a copy of insurance policy, monthly income statements (or profit and loss statements, tax returns, sales reports), invoices, general ledger, purchase orders for the past three to five years, budget and forecast during the normal course of business, if available, and all supporting documents for lost revenues, saved expenses, and extra expenses incurred. Having these documents ready as much as possible could save time for all parties and avoid further disputes.

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Ahuja & Clark, PLLC​ (A&C) brings to their clients more than 20 years of experience in advisory, tax consulting, and accounting services. Headquartered in Plano, Texas, A&C serves local, nationwide and international clients.


A&C employees have significant forensic experience in investigating complex white-collar crime matters, litigation services, investigations involving financial controversies, fraud investigations, asset tracing and reconstruction of missing or destroyed financial records. In addition, A&C staff has extensive experience in quantifying damages and providing well-supported expert testimony

in matters involving misappropriation, or commercial damages resulting from an event, breach of contract, breach of fiduciary duty, fraud, and other causes of action.


A&C has served many industries including but not limited to healthcare, professional services, farming, retail, restaurants, and technology.

Call ​Ahuja & Clark​ at (469) 467-4660 to schedule your consultation. 

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