Business Interruption Claims

/ Author

In the aftermath of Hurricane Irma, many businesses face the prospect of recovering from extensive damage. Hurricanes can not only damage the physical structure of commercial property, but also cause businesses to lose revenue. For business owners, it is essential to become operational again as quickly as possible. Yet, major obstacles await businesses while they are trying to return to normal.

For some businesses, one potential solution is submitting an appropriate business interruption claim.

Business owners should not need to dedicate their time and resources to fighting their insurer about delayed, underpaid, or denied claims. Unfortunately, some insurance companies delay the claims payment process or make unacceptably low offers. What forms of business interruption coverage may be available?

Types of Business Interruption Coverage

There are numerous forms of business interruption coverage, but the most common coverages are actual loss sustained, business income, and period of restoration coverage. The first form of coverage is actual loss sustained coverage, which covers the lost revenue sustained by a business due to direct physical damages or losses to the insured’s property. Some insurers also offer business income coverage, which can include coverage for the reduction in net income caused by suspending business operations as a result of physical loss at the insured’s property. Finally, period of restoration coverage can assist businesses by providing lost business income during the time period between the damage to the physical property and the time when the property, with reasonable speed, is repaired or replaced.

Other coverage options, such as contingent business interruption may also be available as compensation for lost income caused by the property damage to suppliers and providers, or consumers of a company’s products or services.

Business Interruption Losses

If you choose to file an interruption claim, you should compile revenue reports, expense reports, and documentation supporting business history. In some cases, it can be challenging to calculate interruption losses accurately. It can often lead to disputes between an insurance carrier and business.

At Vernon Litigation Group, we understand the challenges facing businesses contending with lost revenue and property damage, and we believe business owners deserve to be properly compensated. That is why you pay insurance premiums. If your insurance carrier is delaying your business interruption claim or tries to underpay your claim, Vernon Litigation Group can help protect your rights and we will work aggressively to resolve your claim.