Insurance Damage Claims

There are numerous sources of insurance damage claims. Several examples include damages as a result of inclement weather, damages resulting from an accident and possibly damages resulting from an economic shut-down (COVID-19).  In most cases, the operations of the business are interrupted or negatively impacted.  Depending on the facts and circumstances, the damages can be in the form of lost value and/or lost profits.

Lost value is a measure of the impairment in the value of the business, measured by virtue of its impaired cash flow that would have been earned by the Company, “but-for” the damaging event, present-valued, assuming the loss is permanent.

Lost profits is a measure of the impairment of cash flow that would have been earned by the Company, “but-for” the damaging event, present valued, assuming a loss for a determinable period.

Depending on the nature of the damage, there are numerous methodologies that can be utilized to calculate the amount of damages. The team at Vallit has significant experience and the technical expertise to identify and apply the appropriate methodologies on a case by case basis.

Causation represents an important issue in these cases. Typically, the Plaintiff will be able to recover damages only if it can be demonstrated that the event represented the proximate cause of the loss.  According to Black’s Law Dictionary, proximate cause is defined as:

“That which, in a natural and continuous sequence, unbroken by any efficient intervening cause, produces injury and without which the result would not have occurred.”

The team at Vallit has significant experience in working with attorneys and/or insurance companies in determining their roles with respect to causation from a conceptual point of view.

Another issue that should be considered in these cases is the concept of mitigation.  There is typically requirement for the injured party to take reasonable steps to reduce the damages, injury or cost, and to prevent them from getting worse.

Finally, the team at Vallit has the experience and expertise to work with legal counsel and insurance companies to understand all the intricacies involved with these matters.  Ultimately, the parties involved can be assured that the work product produced by the Vallit team is accurate, properly supported and defensible.

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