You’re a business owner, and everything you’ve worked hard for has come to fruition. Business is booming, and you’ve acquired insurance to protect your assets in the event of a catastrophe.
Suddenly, a fire, flood or extreme weather destroys your business. You file a claim with your insurance company, but you soon realize that the insurance adjuster is looking out for your carrier’s interests and not yours. It is the policyholder’s responsibility to prove the extent of losses incurred. However, in these unfortunate situations, the insured may not fully understand their policy or lack the knowledge and experience necessary to correctly document business interruption loss.
Understanding Business Interruption Coverage
Business interruption coverage pays for the loss of net income incurred during the period in which your property’s physical damage is being repaired and also factors in continuing and extra expenses. Unless you have purchased extra coverage, business interruption coverage may not cover the loss of market (e.g. customers that may have been permanently lost due to the insured event).
In order to project business income loss, it is important to examine the business’ past and analyze future plans and economies. Supporting documentation for a business interruption claim should incorporate the following:
- History – The insured event’s impact on the business, the fiscal year end, the business’ physical address, goods and services provided, hours of operation, primary suppliers and customers.
- Revenue – Income statements (annual or monthly), tax returns, sales tax returns, bank statements, accounting books and software, sales records and sales forecasts.
- Expense – Production data (before, during and after the loss), payrolls, payroll tax records, lease agreements (for the purpose of determining rent expense), utility bills, contractor estimates and repair receipts.
A hurricane, tornado, pipe break or fire can have a devastating effect on a business, leading to enormous financial losses. Filing a business interruption claim with your insurance is the first crucial step toward your recovery, but will you receive the true payment you are owed under your policy?
If you feel that your insurance carrier is underpaying you for your losses, including business interruption issues, you can count on Liberty Claims Adjusters to represent and protect your interests. Our experienced team of public adjusters has a comprehensive understanding of business interruption coverage and claims. We can correctly prepare and file your claim, meet with the insurance company’s adjusters to assess damage, and negotiate directly with your carrier.
We will thoroughly detail and document all of your losses and work hard to expedite and maximize your settlement.
Contact Liberty Claims Adjusters today! Our team of licensed public adjusters is on your side, and YOU DON’T PAY US UNTIL YOUR INSURANCE PAYS YOU.