Frequently Asked Questions about Business Interruption Insurance Claims

When you experience loss to your business from a hurricane, fire, water damage or flood, you may need a business interruption insurance claims attorney because these claims often require a detailed proof of loss.  Most business owners that are impacted by a peril covered by their insurance recognize they need to determine the replacement values and costs of materials, inventory and equipment that is damaged or destroyed.  However, business interruption insurance provides compensation for losses that are potentially more difficult to prove, such as revenue that is not earned during the time the business facility is being repaired and other expenses that are incidental to a suspension in the interruption of the business.  J.P. Gonzalez-Sirgo has successfully represented many business owners whose insurance carriers greeted their claims for business interruption coverage-related losses with delay, denials and undervalued settlements.

While the precise nature of your business interruption coverage will be based on the specifics of your policy, some of the types of business interruption costs and expenses included in most such policies include:

  • Temporary Relocation: When you cannot conduct business from the damaged business facility, the extra expense associated with conducting operations at another location and the cost of the move may be recoverable expenses under your policy.
  • Lost Profits: This is one of the most critical losses suffered when you cannot operate your business because the loss in profits can potentially cripple the financial viability of your business.  Your policy may cover lost profits up to a maximum period of time, which typically is one year.
  • Replacement Costs: The policy will provide coverage for the replacement of equipment and inventory.
  • Continuing Costs:  There are certain fixed costs that must still be paid even when business operations are interrupted because of a covered peril, such as payroll-related costs.  However, this coverage typically applies only to ordinary and necessary expenses.
  • Additional Expenses: Businesses also may be compensated for other reasonable expenses that allow the business to continue to function beyond continuing costs during the time the commercial property is being repaired.

The process of filing a business interruption claim can be challenging because the business will often have to provide extensive documentation in the form of financial records related to payroll, utility company invoices, receipts, vendor expenses and more.  The insurance carrier will request supporting documentation to prove the profit generated by the business both pre-loss and post-loss.  An experienced Miami business interruption loss attorney can define and allocate revenue and expenses so that an insured’s profit projections are solid when the insurance company attempts to dispute these financial projections.

If you are experiencing push back or your business interruption claim has been denied by an insurance company, a Florida business insurance claims attorney might be able to help.  Miami commercial coverage claims lawyer J.P. Gonzalez-Sirgo welcomes the opportunity to answer your questions and explain your rights.  Mr. Gonzalez-Sirgo handles disputed claims in Miami and throughout Florida.  The Law Firm of J.P. Gonzalez-Sirgo, P.A. offers free consultations and case evaluations.  No Recovery, No Lawyer Fees.  Call 305-461-1095 or Toll Free 1-866-71-CLAIM.

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