A business interruption insurance claim can involve questions that extend beyond physical damage to commercial property. When an insurance company requests an Examination Under Oath, it may seek sworn testimony about the claimed loss, the business, supporting records, and other information relevant to its coverage investigation.
We represent Michigan policyholders facing Examination Under Oath demands involving business interruption claims. We review the insurer’s EUO request, the applicable policy and available claim information, help clients prepare for questioning, review relevant documentation, and provide legal representation during the examination.
An Examination Under Oath, commonly called an EUO, is formal sworn testimony taken as part of an insurance company’s investigation. The insurer’s attorney typically conducts the questioning while a court reporter creates a record of the testimony. The resulting transcript becomes part of the insurance claim file and can be considered when the insurer makes its coverage decision.
Business interruption claims can involve substantial documentation and detailed factual questions. When an insurer requires sworn testimony about one of these claims, preparation matters.
Attorney Henri O. Harmon has approximately 20 years of litigation experience, including property insurance coverage disputes and complex commercial litigation. We use that background to help business policyholders understand what is being requested and prepare before providing sworn testimony.
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Why Would an Insurer Request an EUO for a Business Interruption Claim?
Insurance companies can use Examinations Under Oath to obtain information they consider relevant to the investigation of a claim.
An EUO request does not automatically mean that a business interruption claim will be denied. It also does not, by itself, mean that the insurer has accused the policyholder of wrongdoing.
It does mean the insurer wants additional information under oath before completing its investigation.
Depending on the circumstances, the examination may address the loss, the business, the claimed interruption, supporting records, or information previously submitted to the insurer.
The specific issues depend on the insurance policy and individual claim. We do not assume that every business interruption EUO will follow the same pattern.
Our preparation begins with the insurer’s actual demand and the available claim information.
Business Interruption EUOs Can Be Document-Intensive
One characteristic that can distinguish a business interruption EUO from many residential property examinations is the amount and type of information involved.
A commercial policyholder may have already provided the insurer with documents supporting the claim. The insurance company’s attorney can use those materials when developing questions for the examination.
That makes familiarity with the claim file important.
A business owner or representative should understand which records have been provided and should be prepared to distinguish between information they personally know and information prepared by someone else.
We help our clients review relevant claim materials before testimony begins so they are not seeing important documents for the first time while under oath.
What Questions May Be Asked During a Business Interruption EUO?
There is no universal list of questions used in every Examination Under Oath.
The insurer’s attorney generally develops questions based on the particular policy, claim, documentation, and issues under investigation. Depending on the circumstances, several areas may receive attention.
Questions About the Business
The policyholder may be asked about the business itself and facts relevant to the insurance claim.
The person testifying should answer based on their own knowledge and role. In a business setting, no single person necessarily knows every fact about every aspect of the company.
That distinction should be clear during sworn testimony.
Questions About the Underlying Loss
A business interruption claim may arise in connection with a property loss. The insurer may ask about the circumstances surrounding that event and what happened afterward.
Questions can concern when the loss occurred or was discovered, what property was affected, and what the policyholder did after learning about the damage.
Questions About the Claimed Interruption
The insurer may seek information concerning the interruption being claimed and the circumstances surrounding it.
Because coverage depends on the applicable insurance policy and facts, we avoid making assumptions about whether a particular interruption is covered. Instead, we review the policy and available claim information to understand what the insurer is investigating.
Questions About Supporting Information
The insurer’s attorney may question the policyholder about information and documents submitted in support of the claim.
If particular records were prepared by an employee, accountant, contractor, or another third party, the person testifying should not claim personal knowledge they do not have.
Accurate testimony includes knowing the limits of one’s own knowledge.
Who Should Testify at a Business Interruption EUO?
A business interruption claim can involve corporations, limited liability companies, partnerships, and other business entities. That can create questions about who must participate in the Examination Under Oath.
The answer depends on the policy, the insurer’s demand, and the circumstances.
A business should not simply choose an employee to appear without first determining what the insurer has requested. Likewise, a business owner should not assume that an accountant, property manager, or another professional can automatically testify in place of the person or representative identified by the insurance company.
We review the EUO demand and relevant policy provisions with our clients to determine what the insurer is requesting.
Once the appropriate person is identified, preparation should focus on that witness’s actual knowledge. The witness should not guess about information handled by other people simply because they are testifying on behalf of a business.
The Relationship Between Property Damage and Business Interruption
Business interruption claims can arise alongside commercial property damage claims.
For example, an insured business may have a property claim involving fire, water, storm, or other damage addressed by its policy while also presenting a business interruption claim.
Those portions of the insurance claim may involve different information even though they arise from the same underlying event.
An EUO may therefore address both the physical property loss and the claimed interruption. The insurer’s attorney may ask questions about the condition of the property, the circumstances of the damage, and the effect of the event on the business.
Coverage for any particular loss depends on the applicable insurance contract and facts. We do not assume that business interruption coverage applies merely because a business experienced property damage or a disruption.
We review the individual policy and claim before advising our client.
Why Accuracy Matters When Discussing Business Records
A business interruption EUO can involve information that the person testifying did not personally create.
That is not unusual in a business.
Companies rely on employees and outside professionals to maintain records and prepare information. The important point during an EUO is for the witness to accurately distinguish between information they personally know and information derived from records or supplied by someone else.
A witness should not guess merely because the insurer’s attorney expects an immediate answer.
If the witness does not know or remember something, truthful testimony requires saying so rather than creating an answer.
This is one of the areas we address during preparation. We help clients understand how to answer questions precisely while remaining within the boundaries of their actual knowledge.
What Documents Can an Insurer Request?
An EUO demand may include document requests in addition to requiring sworn testimony.
The particular records sought depend on the insurer’s investigation and the nature of the claim. Commercial insurance matters can involve substantial documentation, which makes it important to review what has been requested rather than treating the production as an administrative formality.
The insurer may also ask questions about documents during the EUO.
Before the examination, we work with clients to identify relevant available materials, understand what has already been provided, and review documents that may become important during questioning.
The applicable insurance policy and circumstances determine the policyholder’s obligations. A document request should therefore be evaluated in the context of the actual claim.
Does a Business Have to Comply With an EUO Request?
Commercial property insurance policies can contain cooperation requirements that impose duties on the insured during a claim investigation.
Those duties may include submitting to an Examination Under Oath.
Failing to comply with applicable cooperation requirements can jeopardize insurance coverage. A business should not ignore an EUO letter, miss a scheduled examination without addressing it, or assume that sworn testimony is optional.
At the same time, receiving an EUO demand does not require a policyholder to approach the process without preparation.
We review the demand and available policy language with our clients so they understand what is required before responding.
How We Prepare Clients for a Business Interruption EUO
Our preparation is built around the specific claim rather than a standard script.
We begin by reviewing available materials relevant to the EUO. Depending on the matter, that may include the insurance policy, the insurer’s demand, claim correspondence, documents previously submitted, information concerning the underlying property loss, and other relevant records.
Preparation may involve:
- Identifying the issues that appear to be driving the insurer’s investigation
- Reviewing the chronology of the loss and insurance claim
- Understanding documents that may be discussed during testimony
- Distinguishing the witness’s personal knowledge from information supplied by others
- Explaining how the EUO will be conducted and recorded
- Preparing the client to answer questions truthfully and precisely
The objective is to make sure the policyholder understands the examination and is prepared to testify accurately about the information they actually know.
What Does an Attorney Do During a Business Interruption EUO?
The attorney asking questions during an EUO represents the insurance company.
We represent the policyholder.
Attorney Henri O. Harmon can review the matter and prepare the client before the examination. He can also attend the EUO, address improper questions, protect the client’s interests, and preserve the record.
Having an attorney present does not eliminate the policyholder’s responsibility to answer appropriate questions truthfully. It ensures that the business has its own legal representation during a formal examination conducted on behalf of the insurer.
For a business interruption claim involving detailed records and potentially significant financial consequences, we believe that distinction matters.
What Happens After the Business Interruption EUO?
Completing the examination does not necessarily mean the insurance company’s investigation is complete.
The insurer can review the transcript together with other information in the claim file. It may ask for additional information or move toward a coverage decision.
Depending on the policy, facts, and investigation, the insurer may pay the claim, continue investigating, delay its decision, dispute coverage, or deny the claim.
The testimony provided during the EUO remains part of the claim file. If a coverage dispute later develops, those sworn answers can become relevant.
Getting an attorney involved after a denial cannot change testimony that has already been provided. We therefore encourage businesses to address an EUO request before the examination occurs.
Why Henri O. Harmon’s Experience Matters in Business EUOs
Attorney Henri O. Harmon has approximately 20 years of litigation experience, and his practice includes property insurance coverage, Examinations Under Oath, breach of contract, and business and organizational disputes.
His commercial litigation background is particularly relevant to this area. Mr. Harmon began his career at a large corporate defense firm in downtown Detroit, where he litigated high-stakes business disputes for major corporate clients. That experience provided firsthand exposure to how institutions and their attorneys prepare for examinations and sworn testimony.
Over his career, he has handled multi-state class actions, multi-district litigation, and complex commercial disputes. His experience includes litigation in state and federal courts across Michigan, Texas, New York, Colorado, Illinois, and California. He is a member of the Multi-Million Dollar Advocates Forum.
We bring that litigation background to business interruption EUOs while giving clients direct attorney involvement throughout the process.
Talk to a Michigan Business Interruption EUO Lawyer Before You Testify
If your insurance company has requested an Examination Under Oath concerning a business interruption claim, the examination should not be treated as another routine step in the claims adjusting process.
The insurer is requesting sworn testimony that will become part of the claim file.
We represent policyholders throughout Michigan, with our office in Southfield, Michigan.
We offer a free, confidential EUO consultation. We can review the EUO demand, discuss the business interruption claim, explain what the insurer is requesting, and help you prepare before testimony is given.
Contact us today to schedule your free, confidential EUO consultation with Attorney Henri O. Harmon.
