What should I know about business interruption coverage?
When a business owner is faced with a disaster on their property, such as a fire, flood, or break-in, there are many steps that need to be taken in order to get the company back on track without taking a financial hit. The primary goal is for the business to remain open while the property is undergoing any necessary repairs. Unfortunately, when high amounts of property damage occur, the business may have to shut down for a certain period of time to recuperate. This, in combination with the expenses associated with the repairs, can be detrimental to a company.
Fortunately, business interruption coverage exists to protect your company in times of disaster. This will help when your income dramatically decreases as a result of a temporary business closure. The insurance company will make up the difference in income. Not only will this type of insurance cover the income discrepancies, but also may help with rent, loans, taxes, and more.
In order to be eligible for this type of insurance, you will have to prove that there has been physical damage at the location your business is conducted, and that the damage was caused by “peril,” such as fire or storm damage. Finally, you must be able to prove that your business was required to shut down for a period of time as a result of the property damage to your business’ location.
It is crucial that you have an experienced insurance law attorney who can provide you with legal 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.