Types of Business Interruption Insurance Coverage

When your business premises is damaged by a hurricane, flood, fire or other catastrophic event, you may experience losses far beyond the mere loss associated with damage to the physical structure.  Business interruption insurance can mean the difference between suffering mere inconvenience from such events and suffering financial setbacks that are so extensive they cost you your business or substantial market share.

Whether the cause of your loss was a hurricane, wind or some other peril, you may have a right to additional remuneration from your insurance company to cover expenses incurred to keep your business solvent while the structure is being repaired.  Despite the serious threat to your business when such perils essentially shut your business down, Florida insurance companies often attempt to devalue, improperly underwrite, deny or postpone paying business interruption claims.  If your commercial property suffers damage that prevents you from operating your business, you need to review your policy to determine the type(s) of business interruption coverage you have under your policy. 

There are essentially three types of business interruption coverage: (1) business interruption insurance; (2) contingent business interruption insurance; and (3) extended business interruption insurance.  Business interruption insurance provides financial compensation to cover income lost during the time you were unable to operate your business because of damage to your commercial structure.  Contingent business interruption insurance provides security against loss of income stemming from damage to your suppliers property or the services and products of your customers.  Extended business interruption insurance offers compensation for income that is lost during the interim period between the time your commercial property is repaired and the time that you are able to get your business functioning properly.

There may be another form of compensation that you can seek under your policy related to a business interruption that involves costs incurred to minimize the financial impact your business suffered.  An insured might rent another building or repurchase damaged inventory to fill an order.  These are business expenses that you would not incur in the ordinary course of business.  Rather, the costs are incurred to allow you to continue you to function so that you do not lose customers or surrender a portion of your market share.

You can reach Miami Business 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].

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