When your business is forced to close because of a damaging event, such as a fire or high winds during a tropical storm, you lose revenue but still have to pay all of your bills. The loss and expenses during these times could be devastating for your business if you don’t have business interruption insurance.
Typicallly, business interruption insurance is part of your commercial property insurance or business owners’ policy package. Also known as business income insurance, it usually covers revenue lost due to a forced closure, fixed expenses, and relocation costs associated with operating from a temporary location.
While this type of coverage can help your business survive following a forced closure, you could run into problems when filing a claim. Unfortunately, many business owners are denied payment, paid less than they need, or given unsatisfactory reasons for a delay in payment. If this happens to you, an experienced business interruption insurance claim attorney from Malik Law can help you get the payment you need to keep your business running.
Issues with Florida Business Interruption Insurance
Business interruption insurance is intended to protect your business from devastating financial loss after a covered peril, such as fire, wind, or lightning. Damage to your property from these perils is covered under your commercial property or business owner’s policy, but the revenue lost and business operating expenses incurred during the time it takes to restore your property are typically covered by your business interruption policy (possibly bundled in a business owner’s policy).
One complication arises when your business is forced to close by civil authority. Coverage typically applies when you cannot access your property or run your business due to a government order resulting from physical damage to adjacent or nearby property. If the government has ordered a shutdown, but there is no physical damage to adjacent or nearby property, or if the government has advised but not ordered a shutdown, you may encounter problems trying to get paid under a business interruption policy.
Other complications include coverage and time limits. That is, if your financial losses are more than the coverage limit in your policy, you will not receive enough to cover your lost income and expenses. Furthermore, if your policy has a limit on the length of time it will help pay for lost income and expenses while you restore your business (typically 12 months), you could also run into problems getting your insurance company to continue paying after the time limit.
Still another complication exists when your business cannot operate because a supplier has been forced to close and is no longer supplying items you need to run your business. If you don’t have contingent business interruption insurance, you will not be covered for losses incurred due to a supplier’s closure.
Finally, determining how much your insurance company will pay for a business interruption loss involves establishing what your business would have earned had the loss not occurred. To do this, insurance companies examine past tax returns, profit and loss statements, projected sales and expenses. If you do not have accurate, updated records, your business interruption losses may not be sufficiently covered.
Experienced Business Interruption Insurance Claim Attorneys Can Help
If you are having trouble understanding your business interruption coverage or have had a claim denied, underpaid, or delayed, please don’t hesitate to contact the experienced insurance attorneys at Malik Law. A delay or denial from your insurer could put your company at risk, so getting authoritative legal advice and having the authority to hold your insurance company accountable is extremely important.
At Malik Law, we understand the law and know how profit-seeking insurance companies work. We’ve established a reputation for preeminence in helping clients throughout Florida obtain what is rightfully theirs from their insurance companies and want to help you.
Call us today at 407-500-1000 or submit the Free Case Evaluation form on our website for a free consultation with one of our expert Orlando insurance claim attorneys.