Most first-party property policies place the duty to reduce the economic impact of a loss-of-revenue event on the insureds. In the manufacturing industry, insureds that have just experienced a loss event often sell from inventory while production is interrupted, all in an effort to minimize or eliminate revenue loss. It's a simple concept.
However, making the insured whole following the loss event – and the subsequent mitigation – should be carefully analyzed.
Meaden & Moore's investigative accounting experts address this in our whitepaper, Manufacturing Business Interruption Loss Mitigated by Stock. Download it today to fully understand the complexities of how to mitigate the economic impact of a loss event.