You may be able to find out if you have business interruption insurance by:
- Reading through the details of your business insurance policy
- Calling your insurance company to find out specific information about your various business insurance plans
- Working with an insurance attorney, who may be able to scan through the fine print of your policy for interruption insurance coverage
Business interruption insurance coverage could be a critical lifeline for those who have it. For many, it means the difference between having their business take a brief hiatus versus closing its’ doors for good.
Business Interruption Coverage Is for Times of Crisis
Many businesses, both big and small alike, found themselves struggling to conduct regular operations during the COVID-19 pandemic.
During that time, many businesses turned to their business interruption insurance seeking coverage for the following items:
- Utilities
- Payroll, possibly including employee benefits
- Rent
- The cost of temporarily relocating their business
- Other protections
Ultimately, how to know if you have business interruption insurance and what your plan covers rests in the wording of your policy. Business interruption coverage is often included as part of one or more policies; it is meant to protect your business from unexpected cessation or a significant decline in your business’ operations.
Business interruption insurance generally kicks in when a company suffers:
- Extensive property damage from a severe weather event, such as flooding, wind, or rain
- Damage from a fire
- Damage because of the theft of essential property
- An unforeseeable disaster that hinders business operations
Filing a claim for losses with business interruption insurance is very similar to how you would report any other claim. The amount of assistance you receive (if any) remains at the discretion of your insurer and the policy in place.
Business Interruption Insurance Can Save Businesses
Let us say that a hurricane tore through your area and left the region without power. In this situation, you might use your insurance for business interruption, since your operations will likely be hindered for an extensive period.
During this time, you would find yourself seeking funds to support your business through several means, possibly including:
- Applying for one or more small business loans
- Adapting your business to digital means of sale, or changing the array of services or goods that you provide
- Relying on your personal savings to support your business
None of these options are ideal, as they may require you to take on more debt, deplete funds that you had set aside for your future, or both. This is where the benefits of business interruption coverage can provide useful protections.
Facing a Denial of Your Business Interruption Insurance Coverage
Yet, despite filing a claim on perfectly reasonable grounds, you may find your claim for business interruption benefits denied. This can be exceptionally devastating, especially when you rely on your business for a regular source of income.
Every business’ insurance coverage is different, and it is important that you:
- Read your policies carefully, paying special attention to language pertaining to business insurance coverage
- File a claim, possibly with the help of an insurance claims lawyer, seeking coverage under your business interruption insurance clause
- Take legal action if that claim is denied
A denied business interruption insurance claim does not have to be the end of the road for seeking the compensation your business needs. If you have just entered the claim’s process, have had a claim denied, or are dealing with an uncooperative insurance company, an insurance claim attorney can help.
An Insurance Lawyer Can Protect You Against Bad Faith Insurance Practices
Some insurance companies partake in what is called “bad faith insurance practices,” where they purposefully try to discourage you from seeking the protections covered by your insurance policy. Unfortunately, some companies do this because they want to save their organization money.
Some of these actions include:
- Denying you coverage, even if you have the strong basis of a claim
- Pressuring you to accept a settlement that does not cover your losses
- Using promissory or misleading language for benefits that do not exist
- Failing to respond to phone calls or messages in a timely manner
While your business is struggling, you deserve the benefits offered under the insurance plan that you have been paying for. In these situations, working with an insurance attorney can help you navigate the claims process, whether that be in or out of court.
Call Our Team at The Landau Law Group for Help Today
Our insurance claim attorneys understand what a challenging time this must be for you, your family, and your employees.
When you work with us, we can handle all communications with the insurance company, negotiate for a settlement on your behalf, and fight for the benefits outlined under your policy agreement.
Call our team at The Landau Law Group today at (866) 703-4878 for a free consultation.
