Seven Tips for Filing a Business Interruption Insurance Claim
When a hurricane, fire or other disaster damages your business, filing a business interruption insurance claim may be your only option to cover your company’s expenses during the repairs. If you cannot sell because your systems are down or your facilities are inaccessible, business interruption insurance can provide the income replacement you need to stay afloat you go through the rebuilding process. If you purchased “extended” coverage, your policy will cover your business losses for a period after you reopen as well. So, you purchased business interruption insurance, and now you need to use it. What do you do? 1. Contact Your Insurance Company. First, you should file a claim with your business interruption insurer right away. Generally speaking, you want to get your claim on file as soon as possible after the interruption occurs – so it is clear that all ensuing losses relate to the interruption and not another, non-insured issue. 2. Make Sure You Know What is Covered. At this point, you need to sit down with your business interruption insurance policy and make sure you know what is covered. Read through your policy carefully, and seek legal advice where you have questions. Insureds often run into issues with their insurers denying valid claims or misrepresenting the terms of their policies, and you do not want to let bad-faith insurance practices get in the way of your business’s recovery. 3. Take Appropriate Steps to Mitigate the Damage. This can get tricky with business interruption insurance; but, after […]