Business interruption insurance, provides coverage to businesses that suffer loss of income and incur expenses due to temporary closure during repairs or restoration process following physical damage to your business (i.e flood, burglary, fire, hurricane, or vandalism). If your business has suffered a loss due to physical damage you may be entitled to loss of business income. Dealing with business insurance adjusters can be a difficult task because many times adjusters attempt to quickly pay out the insured to avoid further payment under applicable coverage, estimate physical damage extremely low, estimate the repair and or replacement costs extremely low, and or request overly broad and or unreasonable evidence or documentation under business property and business income claim.
What Types of Losses Can I Include for My Loss of Business Income Claim?
- Moving to and operating your business from other temporary premises during the indemnity period.
- Loss of projected or anticipated income
- Rental payments for premises
- Storage fees
What Types of Documentation Would I Need for Loss of Business Income Claim?
- Tax returns
- Monthly sales tax returns
- Business contracts
- Financial statements and other documents pertinent to calculating the projected income of your business.
Before you provide any sensitive information to yours or third-party insurance company, it is recommend that you speak with a business insurance attorney in order to ensure you claim is processed properly, thoroughly, and effectively. Our business lawyers at KAASS Law will advise you on the business insurance claims process, help you determine the amount of business income lost, review your business insurance policy, along with your commercial lease agreement, if any.
What Should I Consider When Filing Business Insurance Claim?
- If you are leasing office space, your landlord may be responsible for the damages
- Language in your lease agreement (i.e., who is responsible for damages, tenant must be insured during term, landlord will only pay “x” amount for damages)
- Types of coverage available under your business insurance policy
- Limits on coverage under business insurance policy
- The area the damage occurred. For instance, you are a commercial tenant and your business suffered a loss due to faulty plumbing. The landlord insists that you are responsible for the loss, however, your business was not in “control” or “possession” of fixtures, including pipes, lighting, etc.
- Check your lease agreement to determine if you are liable for rental of the building even if it is demolished during a loss-making event. If so, you may need to estimate the rentals over the indemnity period.
While these are only a few things a business owner should consider, filing a business insurance claim can become confusing and convoluted. Our business insurance attorneys provide a free consultation and case review for your commercial insurance claim following a loss. Call (310) 943-1171 and speak with a Los Angeles business insurance attorney. We are available 24-hours a day.