How Does Business Interruption Insurance Work?
You may have invested so much in your business’s success, physically, emotionally, and financially. So it is unfair when everything you worked so hard for is stripped away from you, for reasons beyond your reasonable control. These reasons may interrupt your business operations indefinitely. In the meantime, you may have to figure out how to make ends meet somehow. This is where an insurance plan may come in handy. With that being said, please follow along to find out how business interruption insurance may work and how one of the proficient New York business interruption insurance attorneys at the Law Offices of Craig A. Blumberg, P.C. can help you get the most out of yours.
What is business interruption insurance used for?
First of all, business interruption insurance may allow your business to recover from financial losses in the aftermath of an unexpected, catastrophic event. Evidently, such financial losses occur because your business cannot operate as it would have under normal circumstances. This may be seen as an optional add-on to your existing commercial insurance plan. Without further ado, you may find the need to tap into your business interruption insurance under any of the following circumstances:
- Your business location may have been broken into and vandalized.
- Your business location may have caught fire from a neighboring property.
- Your business location may have incurred water damage after a flash flood.
- Your business location may have had an object fall on the roof or through the window in a storm.
It is worth mentioning that financial losses caused by pandemics, viruses, and government-mandated shutdowns typically do not fall under this umbrella of coverage.
How should I expect business interruption insurance to work?
You may not receive a payout from your business interruption insurance automatically. Rather, you may have to file a claim with your commercial insurance company and inform them of the catastrophic event that left you with such damages.
Depending on the exact provider and the language they use in their policy, your insurance coverage may not kick in until 24 to 72 hours after the catastrophic event took place. From here, the provider may assess the extent of the catastrophic event, the damages it left behind, and any other relevant factors to estimate how long it may take to reopen your business. So during this approximated timeframe, the provider may cover your fixed costs, lost revenue, and any other extra, related expenses.
Even though you diligently pay for this insurance add-on, receiving its promised coverage may not be exactly easy. This is why we strongly encourage you to retain the services of one of the talented New York business interruption insurance attorneys. You may do so by scheduling an initial consultation with the Law Offices of Craig A. Blumberg, P.C. today.
