Business interruption and STR: quantifying loss of rent
Business interruption and loss of rent claims where the income stream is short-term rental — quantification for insurers and policyholders.
Business interruption and loss of rent policies are often drafted for conventional tenants; STR income streams require specialist quantification. Gross bookings, fees, and variable costs must align with policy definitions and indemnity periods.
Insurers and loss adjusters commonly instruct experts to test claimed lost STR income against calendars, bank records, and historical trading patterns. Mitigation — rebooking, relocation of guests, alternative use — is frequently disputed.
Parallel litigation between owner and operator may involve different quantum theories; consistent assumptions across expert reports reduce confusion.
Early engagement on policy wording, loss period, and data availability improves the efficiency of STR BI analysis.