There’s a lot of complicated and confusing jargon in the insurance business. Having a local independent insurance agent by your side can help clarify things. Reading about insurance words online (for example, in the Mutual Understanding blog) is another way to get more understanding of what something means.
Here’s a common term in insurance: actual loss sustained (ALS). Our Businessowners coverage automatically includes “Business Income and Extra Expense – actual loss sustained.”
As the name suggests, the coverage pays for the actual dollar amount that’s affected by a covered loss. It’s not just physical loss, either. If a windstorm tears through your business and forces you to shut down for a few weeks, your policy will cover building repairs, as well as profits you aren’t earning because your business has to be closed. It also includes ongoing expenses that don’t stop just because your work is on hold (rent, utility bills, salaries, taxes, etc.).
How is this amount determined? It takes experience on the part of the claim specialist examining a loss, a history of the company’s performance, conditions in the overall economy, and many more factors. Each situation is different, and there’s a good bit of research required before an amount is named.
Keeping accurate records can help prove sales figures and reasonable forecasts for the future of the business. Having an estimate of the value of equipment and materials in the business is useful as well.
The value of ALS in a claim isn’t always clear-cut, but if there’s a loss at your business, you will be glad you have Hastings Mutual Businessowners coverage, no matter how much it pays.
Talk to your independent insurance agent for a quote on coverage, and for more details on what Hastings Mutual can do for you.
The Mutual Understanding blog and Hastings Mutual videos are made available for educational purposes only. The information referred to is not an official company statement, corporate policy, or offer of coverage. Refer to your insurance policy for specific coverage. There is no representation as to the accuracy or completeness of any information found by following any link on this site. Please contact your local independent insurance agent with further questions and for more details on any insurance policy-related information you read here.
© 2021 Hastings Mutual Insurance Company. All rights reserved.
What you can do to help hurricane victims — and prevent tragedy at your company.
It’s an essential industry you might overlook.
It’s simple — and essential — to back up your computer. Here’s how.
Hastings Mutual Insurance Company
404 E. Woodlawn Ave.
Hastings, MI 49058
8:00 a.m. - 4:30 p.m. (EST)