Business Interruption and Time-Element Appraisal
Income follows the physical repair
A business interruption number cannot be stronger than the restoration timeline beneath it. If the roof repair, electrical work, equipment delivery, inspections, and reopening sequence are wrong, the income period built on them will be wrong too.
Loss Recovery Experts joins the property valuation to the operating record. The panel sees when the business could operate, when it could not, and what the records show it lost.
Start with the actual policy
Time-element coverage depends on the policy, endorsements, waiting period or deductible, period of restoration, and the insured's records. Do not assume that every commercial policy covers the same income, rent, payroll, or extra expense.
The review reads the policy first. It then identifies the time-element amounts that fall within the appraisal assignment.
The record by business type
Hotels
Booking pace, rooms out of inventory, cancellations, group records, occupancy, average daily rate, seasonality, and reopening phases.
Apartments and rental property
Rent-roll reconciliation, leases, occupied units, damaged units, concessions, move-outs, downtime, and reoccupancy dates.
Retail and restaurants
Sales history, seasonality, inventory loss, closure dates, temporary location records, payroll, and reopening ramp.
Industrial and warehouse operations
Production records, shipping history, equipment downtime, switchgear or machinery lead times, temporary space, expediting costs, and phased restart records.
Professional and service businesses
Appointment records, billable capacity, client cancellations, temporary workspace, equipment rental, and continuing payroll.
Financial records that support the amount
- Financial statements and tax returns.
- Monthly and daily revenue records.
- Point-of-sale, reservation, or property management reports.
- Payroll and staffing records.
- Lease and continuing expense records.
- Extra expense invoices.
- Repair contracts, permits, inspections, and procurement records.
- Communications that establish closure and reopening dates.
Specialist note
For complex time element losses, the appraisal team may work with the insured's accountant, forensic accountant, or another financial expert. Loss Recovery Experts coordinates the property valuation and appraisal presentation. The professionals required depend on the loss.
That coordination matters. The accountant should not invent the repair timeline. The appraiser should not ignore the books. The panel record needs both, tied by date.
Where time-element values break
- Restoration periods that end before required work and inspections end.
- Equipment lead times left out of the schedule.
- Seasonal revenue replaced with a flat annual average.
- Booking pace or rent records ignored in favor of a summary.
- Continuing expenses treated as optional when the business had to carry them to reopen.
- Reopening treated as full recovery on the first day.
- Property and income records that use different closure dates.
These are the items a complete valuation needs to address.
Start with policy and records
Send the policy, insurer valuation, repair timeline, and the operating records you have. The review identifies the covered time-element theory under the policy, the records still needed, and whether the disputed amount justifies appraisal.