What Is Business Interruption Insurance?

If your business has been impacted by property damage that has made a serious impact on your profitability and overall business function, you may be wondering about your options regarding business interruption insurance coverage. Continue reading to learn more about this type of insurance and what is covered under these claims. If you have any further questions regarding your business being interrupted by damage, give our firm a call today. We would be happy to walk you through the legal process ahead.

What is business interruption insurance?

If a business is impacted by property damage, there may be an impact on profitability and functionality. Some insurance policies have language regarding business interruptions, business income protection, profit protection, or out-of-business coverage. These are used to make up the difference between the normal income and income during and after a forced shutdown. When an insurance policy does not have language regarding business interruption, a business owner may need to consider purchasing a separate policy that will protect their business in worst-case scenarios such as fire, wind, theft, or vandalism.

Business interruption insurance will help you to pay regular bills if your company does not yet make a profit including the following bills:

  • Taxes
  • Insurance
  • Rent or mortgage
  • Utilities
  • Loan payments
  • Supplier agreements

This insurance may also have language regarding expenses relating to the loss including the following:

  • Rent for a new location
  • Moving expenses
  • Employee overtime
  • Storage expenses

Business interruption Coverage Requirements

The standard requirements that must be satisfied before business interruption coverage becomes available include the following:

  • The property must be where you conduct business
  • The claimant’s loss must be caused by the shutdown
  • The peril must have caused a necessary interruption of business
  • There must be physical damage to the property
  • The damage must have been caused by a covered peril

Peril refers to the cause of the damage. Many policies cover fire damage, storm damage, theft, and vandalism damage. When preparing your claim, you may require the assistance of an experienced insurance attorney who will walk you through each step of the legal process ahead.  Our firm understands how important it is to be detail-oriented and thorough when dealing with insurance companies. To gain our attorney’s legal support through this process, give our firm a call today.

Contact our experienced New York City firm

The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered a property loss due to a fire, a flood, a severe storm or a robbery, please do not hesitate to contact our firm to schedule a free initial consultation. A knowledgeable attorney on your side in your time of need can make all the difference.