Melbourne, Florida · Serving clients statewide

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Michael P. Sapourn, JD, CIC, CRM
Coverage Lines

Commercial Property and Business Income Coverage

The short answer

Underinsurance disputes often turn on whether property values and business income limits were assessed and updated properly, and by whom. Michael Sapourn testifies on valuation, coinsurance and the agent's role in setting commercial property and business income limits.

Values change; coverage often does not

Many agents write commercial property coverage competently at the start. As time passes, the property must be reassessed:

  • Has square footage been added since the policy was placed?
  • Does the automatic inflation guard really keep pace with construction costs?
  • Have equipment, improvements and inventory been revalued?
  • Are all locations scheduled with appropriate limits?
  • Is property covered when it is away from the premises?

These questions should be asked periodically. Many customers never ask their agents for this help and miss the chance to keep their protection current.

Business income

Inadequate business income protection can be just as devastating. An agent engaged for advice should challenge the client on ongoing cash flow needs: fixed costs first, then the cost of operating from temporary facilities, payroll, and a load for lost profits until the business is back to full capacity. The analysis is partly subjective, but without it insurance becomes a matter of crossing your fingers.

Mr. Sapourn has testified on business income coverage placed with 90% coinsurance after a no-coinsurance form was proposed, and on whether specialized equipment was part of an insured building.

Mr. Sapourn is retained by both plaintiff and defense counsel for case analysis, opinion reports, affidavits, depositions and trial testimony. Request his CV and Rule 26 disclosure through the contact form.

Frequently asked questions

What goes into a business income limit?

Continuing fixed costs, the cost of operating from temporary facilities, payroll, and a reasonable amount for lost profit until the business is back to full capacity, over a realistic restoration period.

Who is responsible for property values?

Typically the insured, unless the agent assumed the duty to advise on values. The relationship and the documentation decide it.

Free consultation

Have Mike look at your situation

Share a few details and he will follow up with you personally. Attorneys looking for an expert witness can use the same form.

Sending this form does not create an attorney-client relationship. Please do not send confidential information until we confirm we can help.

Talk to a lawyer who knows how insurers think.

Tell Mike what happened with your claim or your agent. The first consultation is free, and you will speak with him directly.