Covid-19 Guidance

Dear Valued Customer,

We hope you and your families are staying healthy and remaining optimistic during these extremely difficult times.

At Sanford Insurance, we are all available for any assistance or questions you may have. In light of the current business environment we are recommending the following two options for your company:

1. Review your exposure base estimates on the policy. If an adjustment is necessary, we can reduce the sales or payroll figures which may help with your cash flow (premium reductions).
2. Consider filing a business interruption claim. We advise this after much deliberating and discussions with insurance companies, attorneys and colleagues.  Call us to activate… Although 95% of policies have an exclusion, attorneys and legislators are currently attempting to pierce the exclusion. Below are items necessary in keeping records in the event the coverage positions are changed.

Documenting a Potential Business Interruption and Extra Expense Claim

Although the documentation needed to support a business interruption/extra expense claim varies by industry and business, we have prepared general guidance to assist you in tracking and assembling relevant information. Whether you have insurance coverage or not, it is important to document your loss in real time. When the crisis subsides and insureds are trying to gather documentation to submit a claim, those who have prepared in advance will have their claims reviewed. This outline is not meant to be limiting nor all-inclusive in nature.

1. Prepare a Timeline
   1. Document changes to business operations
   2. Government/Executive/Other Authoritative Orders
2. Track and document key business metrics (varies by industry)
   Examples may include:
   1. Occupancy and Rate Statistics (e.g. room nights/room rates)
   2. Rent Rolls and Vacancy Statistics
   3. Number of Customers
   4. Number of Procedures
   5. Number of Event
   6. Production Levels
3. Track and document expenses that are related to the event (these may be new expense or increased expenses as a result of the Event)
   1. Examples may include cleaning costs, protective equipment, addition of new/temporary employees, overtime, etc.
   2. Maintain purchase orders, invoices, receipts, credit card bills, expense reports, payroll support and other underlying supporting documentation
4. Track specific event related business activity (i.e. cancellations, customer complaints, returns, etc.)
   1. Supporting documentation related to customer complaints, cancellation and/or rescheduling of Events
      1. Correspondence/Email
      2. Copies of contracts related to cancellations and/or rescheduling
      3. Maintain a log that tracks verbal discussions in real time
   2. Identify and document lost opportunities (e.g. for event locations may be the inability to market business or book future events)
   3. Discounts/Special Promotions
   4. Refunds
   5. Rent Abatement
   6. Penalties/Liquidated Damages
   7. Destruction/donation of products (Inventory)
   8. Loss of Key Employees, Vendors and/or Customers
5. Compile a three year look back of financial data including but not limited to:
   1. Monthly and annual profit and loss statements
   2. Budgets, forecasts, projections
   3. General and subsidiary ledgers and trial balances
   4. Key financial reports (e.g. revenues, production, payroll, statistic reports related to the business)
   5. Industry data, statistics and communications
   6. We recommend maintaining this data via separate ledgers and/or accounts.

We hope this information has been a helpful guide for you to manage your insurance policies going forward. Please don’t hesitate to contact us with your questions and concerns. You are a valued client, and we look forward to serving your insurance needs for many years to come.