Every business owner has to account for unforeseen events – like property damage – that might put their business on hold.
Natural disasters are a common cause of business interruptions. Fortunately, insurance companies provide business interruption insurance that cover the damages. A business interruption property claim lawyer can give you strong representation and increase the chances that your insurance claim will be accepted.
Business Interruption Basics
When running a business, being insured against external factors over which you have no control is always a good idea. Business interruption coverage is a type of insurance that pays for any damage or loss of income incurred by a business due to an unforeseen event such as a natural disaster.
Typically, business interruption insurance is a separate add-on. It is not included in a standard insurance policy. It can either be added to a comprehensive insurance package or even a property policy.
The premiums are usually tax-deductible as business expenses. In order for a payout to be approved, the cause of the property or income loss must be covered by the policy.
What Items Are Covered by A Business Interruption Policy?
This type of insurance will cover a variety of different items. These may include:
Operating expenses and other costs of doing business are covered.
A business that is damaged might not always be able to pay wages to its employees. Making payroll is crucial. The coverage of employee wages is a very important item.
Obviously, if a business cannot operate, it won’t be making any profits. This cobverage will reimburse income losses based on the buisness’s past performance.
Loan payments are very strict. If a business cannot operate or earn revenue, loan payment coverage can help the business make those payments.
Reasonable extra expenses
If the business incurs any reasonable expenses beyond fixed costs , this coverage can provide reimbursements.
After a disaster, the premises where the business is lcated can be deemed inoperable. Some policies will cover the costs of moving to or operating from a temporary address.
Do Business Interruption Property Claims Apply During the Pandemic?
As you may imagine, business interruptions policies have become a hot topic recently. The extent of the coverage they offer will depend on the wording of the policy.
Typically, a business interruption policy will cover direct physical damages and losses. These can be from a fire or a natural disaster. However, therer is a distinction between viruses and physical damage.
Since a virus does not lead to ‘physical damage,’ most standard business interruption policies do not cover losses resulting from pandemics.
How Long is the Indeminity Period?
As you may have guessed, insurance coverages have time limits. This time limit is called the indemnity period. In other words, the indemnity period is the period during which the polocyholders’ insurance payments can be paid out. The time will usually start from the moment your business has suffered the damage to the point where it is fully operational.
Only one of the two factors can apply here. The indemnity period will either extend until your business is operational again, or the period expires. Whichever occurs first will mark the end of the period.
Tips for Making A Strong Claim
When making a claim, proper representation can go a long way. Hiring a business interruption property claim lawyer from law firms like Louis Law Group can strengthen your claim.
Here are a few tips on how to ensure your claim is valid and bulletproof:
Tip 1 – Proper documentation
Having proper documentation of your business operations – like profit and loss statements, proof of operating expenses, and so on – is crucial for a claim to be taken seriously. Show how much income your business was generating and the expenses you incur from running the business.
Documenting the extent of the damage and taking pictures and videos can also strengthen your claim.
Tip 2 – Protect your business from further damage
Following an accident or disaster, it’s good practice (if possible) to be proactive about taking cautionary steps to ensure your business doesn’t suffer more damage. You can make small and temporary repairs, and clear health hazards or debris from the the site.
Tip 3 – Get multiple bids for repairs or replacement of damaged property
Always give yourself options. Getting several bids for repairs ultimately works in your favor, since you can pick the offers that give you better value.
- Are losses due to COVID-19 covered by business interruption insurance?
- Generally, no. Business interruption losses mostly cover physical damage done to the property. Consult a lawyer and your insurance provider to see what options you have.
- My business has suffered a robbery. Can I buy business interruption insurance?
- You can’t buy insurance for an event that has already occurred. What you can do is buy a new policy to ensure future mishaps are covered.
- Is it necessary to have a lawyer to file a claim?
- Having a lawyer experienced in the field – like the ones at Louis Law Group – will give you proper representation and significantly increase your chances of getting better compensation.
Navigating the insurance world can be tricky. Usually, an insurer will want to minimize the amount they need to pay to you as compensation. A business interruption property claim lawyer will make sure you have make a strong, valid claim and receive fair compensation.