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2 comments on “Value of replacement cost coverage proven at claim time

  1. John Glenn says:

    1 June 2012
    In your blog entry “Don’t cut corners on business interruption insurance” you wrote that “The U.S. Department of Labor estimates that over 40 percent of businesses never reopen after a disaster. Further, at least 25 percent close within 2 years. Those startling statistics should be enough to prompt a business to review its insurance coverage and give serious consideration to business interruption protection.”
    I have hunted through the DOL site and failed to find this statistic; more importantly, I failed to find on what the statistic is based. Please provide a link to your source.
    John Glenn, Enterprise Risk Management practitioner
    Hollywood/Fort Lauderdale Fl

    1. lynnem says:

      I did some research, prompted by your note, and think that I mistakenly repeated an “urban myth”. I looked at the DOL website and found nothing; however, I did locate this site, which seems to imply that these statistics are not reliable. http://www.continuitycentral.com/feature0660.html
      Thanks very much for pointing this out and sending such a kind reminder to double check sources.