A rare and unexpected storm caused catastrophic fleet damage for a transportation-focused business, interrupting normal service capacity and creating significant financial strain. The company faced not only immediate replacement costs but also a meaningful loss of revenue as operations slowed. To secure reimbursement and manage recovery effectively, the client required a clear, defensible assessment of both lost income and extra expenses.
Our Work at a Glance
Primary Goals:
- Measure lost revenue tied to reduced service capacity
- Quantify additional expenses associated with restoring the fleet
- Present a model consistent with insurance policy requirements
Key Analytical Steps:
- Compared actual versus expected results during the interruption window
- Modeled the impact of replacement costs and reduced fleet utilization
- Reconciled historical financial performance to ensure consistency
- Created an itemized loss-of-revenue and extra-expense calculation included in the final submission
Using detailed booking and operational data, we built a model that clearly distinguished between revenue the company would have earned under normal conditions and the revenue lost due to the damaged fleet. By ensuring historical data was consistent and defensible, the final schedules presented a clear financial picture aligned with insurer expectations.
Outcome: Faster Reimbursement and a Clear Path Forward
The completed analysis enabled the client to present a well-supported claim for both lost revenue and extra expense recovery. The insurer accepted the financial model as reasonable and within policy terms, accelerating reimbursement. With timely approval, the company replaced the damaged fleet and restored operations sooner than anticipated, reinforcing the value of well-documented financial analysis in weather-related business interruptions.
