When a fire, tornado or hailstorm damages your business property you have a commercial property insurance policy to repair the damage. But what about the business losses you suffer? A storm can do more than damage your building. It can destroy the income you derive from operating your business.
Most commercial property insurance policies have business interruption insurance or coverage which will cover you for lost income and certain operating expenses. There are a few caveats. First the loss to the building, and therefore the business income loss, must be due to a covered peril (i.e. a loss covered by your policy). These types of losses would usually include fire, lightning, hail, wind (unless from a named storm or along the Texas coast), theft, tornados and vandalism. Some business income losses due to floods, earthquakes or terrorism are not covered.
There are 3 different kinds of coverage associated with business interruption coverage:
As with any commercial insurance policy, pay attention to this aspect of your coverage before you need it. Make sure there is enough coverage to allow you time to get back up and running again. Make certain you have accurate historical data to prove your loss. One common misconception about business interruption coverage is that the business has to be profitable to claim a loss. This is not true. Just because a business is losing money does not mean it cannot have a business interruption loss.
The most common disputes regarding business interruption losses are:
Business interruption coverage is an essential piece of coverage. Making certain you maximize your benefits could mean the difference between survival and bankruptcy. Contact us for more information.
“ Tim represented us in a dispute with our insurance company over roof damage due to a hail storm in the Dallas area. We were very disheartened by the constant denials and dishonest treatment we were receiving from the insurance carrier, and Tim counseled us to remain patient while he systematically put together expert opinions and facts that supported our claim. Eventually we were able to settle our case and...
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“We have hired Tim Hoch for a number of different legal matters including property insurance claims and collection matters. He understands our business and the need for quick, cost efficient results. Tim has a no nonsense approach when dealing with legal matters. In my business, that approach is refreshing. We look forward to using Tim in the future to handle our litigation.”