Result Driven Impact

Natural Disaster Business Interruption

Backstory

Dr. Gutierrez owns and operates a medical practice in the Southern U.S. and began an 831(b) Plan administered by SRA. Dr. Gutierrez designed his plan to fit his business needs and to address the risks he was most concerned with, including business interruption. Dr. Gutierrez contributed to his 831(b) Plan for two years without incident and was able to accumulate his annual contributions inside of a managed investment account. In 2021, Dr. Gutierrez’s clinic was impacted by ice storms in his local area.

  • INDUSTRY- Medical
  • ANNUAL GROSS REVENUE- $2 Million

Risk Interruption Risk

Despite the growth of internet commerce, many businesses rely upon customers being able to access its physical location. Dr. Gutierrez operates in the Southern U.S. and is most concerned with adverse weather, such as a hurricane, affecting his day-to-day operations and the ability of patients to access his clinic.

Incident

Following catastrophic ice storms in his area, Dr. Gutierrez’s medical practice was forced to close. Roads in the area were closed for several weeks, resulting in business shutdowns. Dr. Gutierrez’s patients were unable to make their scheduled appointments due to the resulting road closures

Resolution

Dr. Gutierrez filed a business interruption claim to the direct writer of his 831(b) Plan. The direct writer began its claims adjusting process to first determine coverage. Upon review, the direct writer determined that its business interruption policy provided coverage for the business interruption resulting from the ice storm incidents. Once coverage was determined, the direct writer requested additional documentation from Dr. Gutierrez to understand the extent of the loss. After receiving financial statements, the direct writer determined Dr. Gutierrez’s loss and made a claim payment to his practice for the limit of the policy.

The outline below breaks down how Dr. Gutierrez’s $30,000 claim was paid by all parties, consisting of a deductible, his 831(b) Plan ARC, the direct writer, and the business interruption Risk Co-Op.

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