When handling a Business Interruption claim, what is the adjuster not required to determine?

In the context of handling a Business Interruption claim, the adjuster's role primarily focuses on assessing the financial impact that the interruption has had on the business's revenue and expenses. While the adjuster is required to determine gross revenues impacted by the interruption, net profit lost, and any supplemental expenses incurred for operational recovery, assessing fixed expenses is typically not part of their responsibilities.

Fixed expenses are costs that remain constant regardless of the level of business activity, such as rent or salaries. Since these expenses do not fluctuate due to the business interruption, they are usually predetermined and are not affected by the interruption itself in terms of the claim. The core focus of a Business Interruption claim is on the income lost due to the disruption and any additional costs incurred to mitigate that loss, rather than on expenses that the business would have incurred regardless. Therefore, while it's essential for an adjuster to have a comprehensive understanding of a client's financial dynamics, determining fixed expenses during the adjustment of a Business Interruption claim is unnecessary for assessing the claim's value accurately.