What Events Trigger Business Interruption Insurance?

As a business owner, you may know all too well that any stray from normal operating procedures may cause your business to experience an income loss. In a more drastic shift of events, you may fear that your business is teetering on a permanent closure. You may tell yourself that this is exactly why you carry insurance. Well, with that being said, please follow along to find out the types of events that might trigger business interruption insurance and how one of the proficient New York business interruption insurance attorneys at The Law Office of Craig A. Blumberg, P.C., can fight to ensure this coverage remains unaffected. 

What types of events trigger business interruption insurance coverage?

If your business insurance policy is like most other standard ones in New York State, your business must have experienced a direct physical loss or damage to its property for coverage to apply. In other words, there must have been a tangible harm rather than simply a decline in revenue. For this, it is important to read your policy’s language and learn what constitutes a covered peril and what is explicitly excluded. 

For example, you may be covered if a fire causes your brick-and-mortar business location to incur structural instability, a lightning storm prompts complete electrical damage, or an act of theft or vandalism is serious enough that halting your business operations is necessary. However, a catastrophic flood may not trigger insurance, even if it causes serious water damage to ensue. This is notably similar to homeowners’ insurance plans that notoriously exclude flood damage unless a policyholder opts to pay for additional coverages. 

Also, say that a neighboring business experiences any of these triggering events instead. Still, your business may be indirectly affected, as there may be lead to construction zones that make it inconvenient for customers to visit your brick-and-mortar location. Unfortunately, though, to reiterate, lost income opportunities without physical property damage may not be enough for insurance coverage to kick it. The only exception may be if you can prove the construction zone creates a hazardous environment or exposure to contamination for passersby and your business location itself, making it unusable during this project. 

What insurance policy exclusions might affect coverage triggers?

Further, you must understand that even if your business experiences an event that would normally trigger your interruption insurance coverage, a specific exclusion may have the power to override it. The most common example of this is if there were a lightning storm that caused your brick-and-mortar business location to flood. While a storm is generally covered, your standard commercial property policy may use explicit language that excludes flood damage. 

To conclude, to ensure you get the coverage to which you are entitled, it is in your best interest to have one of the talented New York business interruption insurance attorneys representing you. Please pick up the phone and call The Law Office of Craig A. Blumberg, P.C., today.