A small business or company may be forced to close its doors due to a fire, hurricane, or other catastrophes, resulting in significant financial losses. Your finances may suffer if you shut down or relocate your firm due to an unforeseen event resulting in physical damage.
Business interruption insurance can help you prevent financial loss attributable to a covered incident. For instance, if a fire destroys your company’s structure, business interruption insurance may cover lost revenue and other expenses associated with temporarily relocating your operation.
At Klotzman Property Damage Law, our Miami business interruption attorneys are familiar with how insurance companies handle these intricate claims. Our lawyers work closely with professionals to evaluate business interruption losses and are skilled at handling issues swiftly to ensure that our clients receive the maximum coverage.
What Is Business Interruption Insurance & What Does It Cover?
In addition to their usual property and liability insurance, business owners can get business interruption insurance. Sometimes it is added to the policy as a distinct coverage. The insurance covers lost wages in the event of disasters, whether they are natural or artificial.
The policy typically covers the following.
- Fixed costs: Operational and already paid expenses are examples of fixed costs, which can be used to calculate how much you can recover.
- Temporary location: Your insurance provider needs to assist you in paying the rent for a temporary place for your organization.
- Lost profits: The payout amount from an insurance company may depend on how much money the company brought in the previous month.
- Commissioning and training expenses: If the equipment is new, a company can change it and retrain its staff without incurring additional costs.
- Civil Authority Ingress/Egress: Business interruption insurance can assist make up for lost revenue if the government orders a curfew or a street closure.
- Extra Costs: Your insurance provider is responsible for covering any expenses incurred in addition to your company’s regular operating expenses.
- Wages: Insurance ought to assist in covering wages and other expenses associated with a halt in production.
- Taxes: A business interruption policy should cover a portion of the taxes associated with operating a business while it is shut down.
- Loan Payments: Any small business loan payments you must make while your business is closed should be covered by business interruption coverage.
What Can I File a Business Interruption Claim for?
Business interruption insurance aims to cover your losses when you have to shut down your firm because it can’t operate due to covered property damage. You may find out what types of events your business interruption insurance covers by reading the conditions of your policy.
Here are some perils covered under a business interruption claim:
- Aviation disasters
- Storms, hurricanes, floods
- Chemical spills and pipeline breaches
- Water damage
- Vandalism and theft
- Machinery failure
Studying your policy’s exact terms is crucial to see what it covers because different policies may have different wording. A Miami business interruption attorney will review your policy to determine whether you have any other choices if your insurance company denies a claim for business interruption insurance.
What Is the Business Interruption Insurance Claims Process?
Business hiccups are bothersome, and it helps if you are ready for them. Making a logical assertion is crucial when submitting business interruption claims. If you don’t, there may be a struggle during the claim process, or your claim may be rejected.
There are five crucial steps to take as you move through the process.
Establish a Response Team
Ask the response team to review your insurance policies thoroughly to find out what kinds of losses your insurance company will cover and what alternative methods you might turn to to get your money back.
General business interruption, coverage for contagious diseases, contingent business interruption, civil authority, general liability, trade and supply chain disruption, and force majeure are all items covered by business interruption insurance. The group should also investigate all state and federal financing options and how it interacts with insurance policies.
Maintain Direct and Open Contact With Your Insurance Provider
Although viewing your insurance provider and agent as rivals is tempting, this is still a professional relationship. Being honest and prepared to respond to inquiries can help maintain a positive relationship with your insurance provider. This will increase your company’s trust and reputation while decreasing the likelihood that the claim will result in a conflict.
Locate, Gather, and Organize Evidence
You need crucial data to back up your business interruption claim with your insurance provider. Necessary information might include:
- Unforeseen cost,
- Earnings from damage-reduction activities compared to regular profits, and
- Additional expenses incurred as a direct result of the loss event.
Look for Strategies to Decrease the Impact
Most insurance policies state that the insured must make efforts to reduce the impact of a loss. A restaurant that runs out of seating options might transition to a take-out and delivery business model. A manufacturing firm that encounters difficulties farther down the supply chain might look for new suppliers as a solution.
It’s crucial to keep track of any additional expenses brought on by mitigation measures and how sales and expenses offset earnings.
Enlist Expert Help
You might need the help of a Miami business interruption attorney and other experts such as an economist to devise ways and actions to document and prove your losses.
Our Miami business interruption attorneys will also help interpret critical clauses in your policy, guide you through the claim process, and represent you if the insurance company unfairly denies or undervalues your claim.
What Is Civil Authority Coverage?
Civil authority coverage, or rather a public authority clause, describes how the loss of business income coverage (BIC) functions when a government body restricts access to covered property. Civil authority provisions are a common component of commercial and residential property insurance policies.
The clause specifies whether the insurance provider will cover lost business income if a government agency prevents you from accessing the covered property. This can include orders issued by the federal, state, or local government.
For example, many states ordered the closure of non-essential businesses during the height of the COVID-19 pandemic. Civil authority coverage is designed to protect your finances in such a situation.
Our professional Miami business interruption insurance lawyers can help assess your business interruption case and determine the best route.
Why Would the Insurance Company Deny My Business Interruption Claim?
As your restaurant or other business closes down because of a natural disaster or any other reason, you might have turned to your insurance company and filed a business interruption claim to help you get compensation for your losses. If your business interruption claim is denied in Miami, it is crucial to understand the reason for the denial.
The following are some excuses that insurance companies give.
- The claim was not timely.
- The insurance company suspects fraud.
Your insurance company can deny your business interruption claim if they determine that your insurance has lapsed.
Your commercial property insurance coverage may lapse when:
- You fail to pay premiums on time,
- The insurance company cancels your policy unilaterally, or
- The insurance company no longer exists.
The Damage or Losses Are Excluded
Most commercial property insurance policies list all the perils and losses they cannot cover. Your insurer might deny your business interruption claim and give an excuse that your losses fall under a policy exclusion.
Your insurance company can only compensate you for a covered peril in your insurance policy. Always review your policy to make sure you have the coverage you need.
What Can I Do If My Business Interruption Claim Is Denied?
Is your insurance company delaying, underpaying, or refusing to pay anything for your business interruption claim? Speak with an experienced Miami business interruption attorney of Klotzmam Property Damage Law to represent you.
Most insurance companies will never hesitate to take advantage of policyholders who represent themselves. Since you are unfamiliar with the insurance jargon and your rights, insurance companies can use this against you and delay the process or make it hard for you to get the compensation you deserve.
At this point, you need our Miami business interruption lawyers’ experience, skills, and tenacity. We will fight for more compensation if your claim has been underpaid or challenge the rejection if your claim was denied. We will ensure that your situation is handled with the attention it deserves.
How Can a Miami Business Interruption Attorney Help?
Miami business interruption insurance lawyers at Klotzman Property Damage Law know what it means to invest thousands of dollars in insurance. You must be protected when you need it the most. However, when your business closes down because of an unexpected disaster, you may be surprised to learn that you cannot depend on your business interruption policy to offer you help.
Every year, insurance companies make billions of dollars in profits from denying legitimate claims. If your concern is if you can get your business interruption claim, well, our attorneys at Klotzman Property Damage Law can help you in many ways.
The truth is that most insurers can deny your business interruption claim by stating that their policy does not cover you. If it gets to this point, you need to contact your attorney at 954-915-7405 to take a second look. We will help you keep your business operational.
At Klotzman Property Damage Law, we have the experience to build a strong case against your insurer and help you receive the compensation you need for the damages caused to your business premises.
- We will review your insurance policy.
- We will handle communications with your insurance company on your behalf.
- We will negotiate a fair settlement with your insurance company.
- We will file a lawsuit and represent you in court should your insurer devalue or deny your claim.
Call Our Business Interruption Lawyers in Miami Today!
For many Florida companies and small businesses, business interruption insurance claims are the last resort for staying in business after a natural disaster. The premiums for business interruption coverage can be costly, making the fact that insurers might wrongfully undervalue or deny your valid claim more frustrating.
If you are worried about being cheated by your insurance company, now is the time to seek legal guidance you can trust. The dedicated Miami business interruption lawyers of Klotzman Property Damage Law are ready to advocate on your behalf. We know what is at stake, and our team will work tirelessly to help save your small business or company.
Call us at 954-915-7405 for a free and confidential consultation right away.