Business interruption (BI) insurance is crucial for private equity firms, as it provides financial protection in the event of unforeseen disruptions to a portfolio company’s operations. Interruption in business operations due to natural disasters, supply chain disruptions or cybersecurity breaches can have a significant financial impact to a fund’s bottom line. For private equity firms, business interruption insurance is not only a risk management tool but also a strategic asset that can safeguard their investments, maintain the trust of investors and protect the long-term value of their portfolio companies.

In this episode of The Drawdown, we welcome three members of Cherry Bekaert’s Forensic and Dispute Advisory Services team: Lori Smith, Partner and Practice Leader, and John Collier and J.C. Tuthill, Managing Directors.

Together, they discuss:

  • 1:28 – Business interruption insurance triggered upon damage to covered property at the premises
  • 2:30 – Coverage and policy terms for funds and portfolio companies
  • 4:25 – Calculating payment for types of business losses
  • 11:00 – Dependent property coverage
  • 12:55 – Next steps for fund managers

If you or your private equity firm have any questions about business interruption insurance or how to prepare for a disruptive event, please reach out to our Forensic & Dispute Advisory Services team.

Connect With Us


View All The Drawdown Podcasts

 

Lori Smith

Forensic & Dispute Advisory Services

Partner, Cherry Bekaert Advisory LLC

Jacqueline (J.C.) Tuthill

Forensic & Dispute Advisory Services

Managing Director, Cherry Bekaert Advisory LLC

John Collier

Forensic & Dispute Advisory Services

Managing Director, Cherry Bekaert Advisory LLC

Past Episodes

Podcast

November 11, 2024

20:43

Speakers: Sarah McGregor, Brooks E. Nelson, Mark Giallonardo

Learn how to claim disaster losses and defer casualty gains under IRS rules. Explore relief measures for individuals and businesses affected by disasters.

Podcast

November 7, 2024

22:13

Speakers: Brooks E. Nelson, Sarah McGregor, Martin Karamon

Learn about the ERC's voluntary disclosure program, IRS moratorium, and how employers can navigate claim eligibility and refund processing changes.

Podcast

September 17, 2024

11:45

Speakers: Christopher J. Truitt, Martin Karamon, William W. Billips, Timothy Doran

Learn how transferable energy tax credits under the Inflation Reduction Act offer private equity funds new tax planning opportunities and innovative deal structuring.