When an insured is able to provide accurate information, they have a much better chance of recovering the full amount of the losses or damages that they have sustained. This principle holds true for business owners who file claims for lost income due to business interruption. Having business interruption insurance coverage in place is essential for being able to recover in the event that losses or damages occur at your business location. Having the right amount of coverage in place and having ample documentation of what your business earns are essential for being able to recover the proper amount of lost income.
Business interruption has been acknowledged by a 2015 Allianz Risk Barometer report as the top threat facing companies this year, right up there at the level of concern that business owners have regarding fire and natural disasters. Since the threat of business interruption looms large, business owners are advised to prepare themselves as much as possible for an interruption in their business operations.
The first step in preparing for the possibility of business interruption is to make a plan. The plan for your business might include relocating to one of several potential alternate locations that you have selected ahead of time, or, depending upon the nature of your business, having your employees work from home. Your plan should also include some sort of checklist for who makes which types of decisions and when and how people like employees, suppliers, and customers are to be notified of the changes. If an interruption does occur, you will be glad that you made a plan because critical thinking skills and decision making abilities are often severely compromised during times of tragedy.
The second step is ensuring that you have business interruption coverage, and that the coverage amount is adequate. Read all of the fine print in your policy, so that you understand how it works and how that would play out in the event of an actual business interruption. Thirdly, make sure that your financial records are always up to date, and that they are getting backed up regularly to a secure location. This data is crucial in calculating the financial impact of a business interruption accurately, and you do not want to leave anything to chance.
Being able to recover for lost income can make all of the difference between being able to resume operations and going out of business.
You can reach Miami Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Attorney Gonzalez-Sirgo directly at [email protected].
