Business Interruption Claim

Project Overview

The Chippewa Cree Tribe’s Rocky Boy’s Health Clinic was severely impacted by a devastating flood and landslide. As a critical healthcare provider, the clinic offered various essential services, including general medical care, mental health support, pharmacy services, optometry, dental care, chiropractic, physical therapy, and more. However, the disaster left the facility compromised and halted its ability to provide vital services to the community. In response, the Tribe required expert assistance to prepare a comprehensive business interruption claim.

Understanding the Mission

The Chippewa Cree Tribe engaged Hagerty to provide support in filing their business interruption claim. The goal was to ensure the Tribe received the maximum reimbursement for losses sustained at the Rocky Boy’s Health Clinic. This financial support was essential for the clinic’s immediate recovery and restoration of vital healthcare services.

Hagerty’s role was to guide the Tribe through the complex process of documenting and substantiating their losses. Ultimately, these efforts would enable the clinic to rebuild and resume operations as efficiently as possible.

The Hagerty Approach

Our team worked with the Tribe’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO) to prepare financial documentation for their business interruption loss statement. Our approach included:

• Organizing and Coordinating Insurance Documentation: Hagerty collected and organized all documents related to insured losses and prepared the proof of loss required by the Tribe’s insurance policies.
• Regulatory Analysis: We carefully examined the Federal Emergency Management Agency’s (FEMA) application of the “duplication of benefits” regulations, which impacted the Tribe’s project worksheet grant amounts.
• Revenue and Expenditure Analysis: Our team compared pre- and post-disaster revenues and expenditures for the clinic, ensuring accuracy in financial reporting.
• Interviews and Data Gathering: We conducted in-depth interviews with the clinic’s medical staff, executives, and tribal council members to better understand the clinic’s operations and losses.
• Revenue Loss Modeling: Hagerty developed precise models to estimate both actual and projected revenue losses, helping to prepare a thorough proof of indemnity for the Tribe’s claim.

After, we carefully compiled all documentation, which was then provided to the Tribe to include in their statement of loss.

Achieving Results

As a result, the Tribe successfully submitted a business interruption and extra expense claim exceeding $15 million. This claim represented one-third of the Tribe’s total statement of loss. Additionally, Hagerty identified deduction errors in 15 percent of the FEMA project worksheets. These efforts ensured the Tribe received the full reimbursement they were entitled to.