If you are wondering how to file a business interruption insurance claim, you will need to call your insurance company. This is the clearest way not to expend any unnecessary effort when filing a business insurance claim. According to the Insurance Information Institute, you will generally need to:

  • Calculate the revenue you were taking in (on average) before the interruption
  • Calculate the revenue that you are taking in after the interruption
  • Calculate any other expenses related to the interruption, such as the cost of relocation or re-configuring your business on a digital platform
  • Document expenses that you are still paying despite the interruption, such as rent and payroll
  • Call your insurance company to find out how to file your claim

Your insurance company may require you to take additional steps—possibly including providing documentation beyond what is listed above—in order to file your claim. Generally, you will need to take each of the above steps in order to file a complete claim.

Determining Your Eligibility for Business Interruption Coverage

If you are unclear on whether you are eligible to receive coverage for any stoppage in your business—including one related to COVID-19 (novel coronavirus)—then you should take several steps. Understand that business interruption insurance (if you have it) is generally included in either:

  • A business owner’s policy (BOP)
  • A property and casualty insurance policy

Business interruption insurance included under your property and casualty insurance policy generally pertains to physical damage incurred to your business, according to the Insurance Information Institute. For coronavirus-related business stoppage, your business owner’s policy may be the most likely source of coverage for your losses.

Still, it is important that you:

  • Read carefully each of the insurance policies for your business
  • Look specifically for language that could entitle you to coverage under the current circumstances, including any language pertaining to “business interruption”
  • Keep an eye out for any business interruptions that are excluded under your coverage

Even if your policy has a “bacteria or virus”-related exclusion, it may be worth filing a business interruption insurance claim. The circumstances surrounding the COVID-19 economic shutdown are unprecedented, and your business may ultimately be able to collect compensation through a claim or subsequent legal means.

A Lawyer Will Review Your Insurance Policies

You may or may not be aware of what your business-related insurance policies cover.

A lawyer can help you understand your policy. They can also:

  • Spot language in your policy that is unclear but has ramifications for your eligibility for business interruption coverage
  • Help you better understand all that your policy likely does or does not cover
  • Speak with those in the insurance sector about the evolving policy surrounding coronavirus as it pertains to insurance coverage
  • Help you file a business interruption claim
  • Lead your legal appeal for compensation if your claim is ultimately denied
  • Serve as a source of advice and consolation during this very confusing and concerning time for you and countless other business owners

If you are eventually able to obtain compensation through business interruption coverage, you may be able to collect funds to help you sustain your business through the indefinite stoppage in operations.

Your Possible Coverage Under Business Interruption Insurance

Coverage for a business interruption will vary depending on:

  • Your specific policy
  • The circumstances of your business closure
  • The approach that your insurer takes with respect to your coverage

Some possible forms of coverage may include:

  • The cost of payroll while your business is out of operation
  • The cost of employee benefits during the interruption
  • The cost of any rent or mortgage payments for your business property
  • The cost of relocating or refashioning your business for digital or other sales channels
  • Other business-related expenses that you must continue to pay during the stoppage in operations

As you may already know, obtaining business-related financial relief has not been easy for most small business owners during the coronavirus pandemic. Obtaining any business interruption coverage that you are entitled to may ultimately require legal action.

Call Our Team at The Landau Law Group Today

If you are concerned about how to file a business interruption insurance claim, do not try to fight for the financial relief that you need on your own. Call our team at The Landau Law Group today at (866) 703-4878 for a free consultation regarding your pursuit of business interruption insurance coverage. We may also be able to advise you on other matters that could prove beneficial to your business.