Business Interruption Insurance for NYC Commercial Properties
When a business suffers from property damage in New York City due to a flood, fire, high winds, theft, or vandalism, they may be concerned about what will happen to their business as they try to recover from the incident. Unfortunately, sometimes businesses are forced to close their doors for a period of time while the damage is repaired. Luckily, many insurance companies offer a policy for business interruptions, which are sometimes referred to as profit protection, out-of-business coverage, or business income protection. It is important to determine whether or not a policy includes language about business interruptions already or if it is necessary to purchase additional coverage.
The purpose of business interruption insurance is to help a business stay financially afloat during a period of forced shutdown. The insurance will usually make up the difference in income between what was lost during the shutdown and normal income. Some of the bills that a business may be expected to pay may also be covered, including rent, mortgage, taxes, loan payments, utilities, insurance, and supplier agreements. In addition, some of the other expenses that may be covered under this insurance policy include moving expenses, the cost of rent for a new location while repairs are being made, storage expenses, and employee overtime.
The standard of business interruption is quite high. That being said, disputes regarding what business interruption truly is may arise. Of course, an insurance company is always going to try and save itself money. It may be beneficial to consult with an experienced insurance attorney that can provide assistance.
The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.