Sometimes, new business owners have no idea what kind of insurance they need. They know that Florida law requires them to carry workers’ compensation insurance if they have more than four (4) employees. But when it comes to business interruption insurance, they’d be better off talking to a Miami property damage lawyer.
Your Miami Property Damage Lawyer Is Familiar with Business Interruption Insurance
Our property damage attorneys in Miami have handed their fair share of business interruption cases. Some business owners purchase the insurance but have no idea what it covers. Many don’t even know when they’re entitled to file a claim.
This is why our Miami property damage lawyers take the time to explain how business interruption insurance works. We encourage business owners in Miami to come into our office. If you think you have a valid claim but aren’t sure how to go about filing it, we can help.
Why Do People Buy Business Interruption Insurance?
If you aren’t sure if you should buy business interruption insurance, you should talk to a property damage attorney in Miami. You have no idea how beneficial this type of insurance can be.
Even though business interruption insurance doesn’t cover physical damage, it can mean the difference between keeping your business open and shutting your doors. Given that it is relatively inexpensive, it’s in your best interest to buy it sooner rather than later.
Are There Business Owners Who Don’t Need Business Interruption Insurance?
Some small business owners don’t see the point in buying business interruption insurance. They just assume that the kind of things that would hurt their business wouldn’t be covered by insurance.
For example, imagine that you have a small company with just three employees. You sell fresh seafood three days a week. The biggest threat to your oceanside location is flooding. Since business interruption insurance doesn’t cover flood damage, they don’t buy it.
You Can File a Business Interruption Claim for Most Natural Disasters
Just as with homeowner’s insurance, your business interruption insurance covers losses suffered due to a natural disaster. The type of events that are covered perils include the following:
- Fire
- Theft
- Vandalism
- Hail
- Wind
- Lightning
- Terrorism
The way this type of insurance works is unique. It does not cover the damage caused by these events. Instead, it covers business interruption losses that were triggered by these events.
Business Interruption Insurance Covers Normal Operating Expenses and Lost Profits
When you meet with your property damage attorney in Miami, they’ll explain what kind of losses business interruption insurance covers. When you add up the money you can lose if your business is shut down for a week, you’ll see why having this insurance is pivotal.
The types of things that are covered by your business interruption insurance include the following:
- Payroll and employee’s wages
- Taxes
- Relocation expenses
- Day to day operating expenses
- Lost profits
- Monthly loan payments
- Cost of new machinery
- Cost of training employees on how to use new machinery and equipment
Of course, this is not an exhaustive list. Different types of businesses have their own unique operating costs, expenses, and revenue streams.
When you purchase your business interruption policy, make sure the policy limits are in line with your sales, profits, and expenses. You should also talk to your agent about how long the coverage will last.
The standard business interruption insurance policy only covers thirty (30) days’ worth of losses. However, you can extend this to one year for an additional fee.
Your Property Damage Attorney in Miami Knows What Will Not Be Covered
It is important to understand exactly what your business interruption insurance covers. However, it is also critical that you know what your policy will not cover.
When you are trying to rebuild your business after a major theft or natural disaster, you need to make a budget. To do this, you need to know what things you’ll have to pay out of pocket for.
If you aren’t sure how to do this, contact one of our property damage attorneys in Miami. They can review your policy and explain what is and what is not covered. Below is a brief summary of some of the things that are typically not covered.
Losses Caused by a Flood
Almost all homeowner’s policies do not include flooding as a covered peril. The same is true for your business interruption insurance. The things listed above as covered business expenses are not covered if the losses were caused by a flood.
Physical Damage to Your Property or Storefront
It’s important to remember that your business interruption insurance doesn’t cover any physical damage caused. While there are certain triggering events that are covered, it isn’t the damage from these events that is insured.
For example, if there is a fire at your store, you will likely suffer physical damage to your brick-and-mortar location. This is not covered by your business interruption insurance.
However, if you had to close your store and lost $30,000 in profits because of the fire, that will be covered by your insurance.
Injuries Suffered by Your Employees During the Covered Event
Another thing that is not covered by your business interruption insurance is injuries to your staff. If someone gets hurt in your store during a covered event, that isn’t covered.
Now, if you lose money because that employee is your best salesperson and can’t work, that may be covered.
Damage to Company Vehicles
Most business owners park their company vehicles near their building. If there is a fire or some other disaster that spreads to your cars, it could be a big loss. However, this isn’t covered by business interruption insurance.
Like most other physical losses, your Miami property damage lawyer would have to pursue a claim under your other insurance policies.
If You’re Concerned About Coverage, Contact a Property Damage Lawyer in Miami
If you own your own small to medium-sized business in Miami, you should have a basic understanding of how insurance works. There’s a good chance you have business interruption insurance as well. What our Miami property damage lawyers do is help our clients file their claims and get compensated for their business losses.
Many people are confused about what business interruption insurance covers. Some people assume that this policy is similar to the insurance homeowners purchase to protect their house and personal property.
We suggest that you contact our office if you’re having trouble getting your business interruption claim paid. Sit down with one of our property damage attorneys in Miami. They can review your policy and let you know if your claim is worth pursuing further.
