When you’re dealing with an insurance company representative about a business interruption loss insurance claim, it is prudent to operate under the assumption that if you don’t have a verbal agreement in writing, the conversation never happened.  Verbal meetings to discuss a business income insurance claim can be very productive, whether they happen face-to-face or over the phone. However, I always recommend that risk managers, corporate officers, and business owners should “recap” their verbal conversations immediately after they occur.   Here’s an example of how to do that:

Ms. Insurance Adjuster,

Thank you for taking the time to speak with me on the phone today, February 10, 2010.  Based on our discussions today, it is my understanding that:

1. You agree that we should move forward immediately to obtain new inventory.
2. You agree that, in order to minimize the business interruption loss, I can approve an additional $100,000 to expedite the production and shipment of the replacement inventory.
3. Etc. (Include all appropriate items).

If my understanding of the above is incorrect, please reply to this email within two days of receipt.  Thank you for your time and effort.

Regards,
L. Parkington
CFO
Amazing Business Co.

This type of written “recap” will help prevent misunderstandings, and it will create a documented trail of agreements for a business interruption claim.  It will also assist in holding all parties accountable for their commitments.