How To Prove A Business Interruption Claim

As the owner of a small or medium-sized business, you understand the devastating impacts of being forced to close your business. This is something many business owners had to contend with during the COVID-19 pandemic, but business closures happen for other reasons, too. Regardless of why you have to close your business, you may be able to file an insurance claim to recover the costs of closing your doors temporarily. As with any other type of claim, though, you will have to prove your case. Below, our Daytona Beach business interruption insurance claims lawyer explains how to do it.

What is a Business Interruption? 

Before filing a claim, or worrying about proving your case, it is important to understand what constitutes a business interruption for insurance purposes. One of the first things you must establish is that your business did in fact suffer from an interruption. It is not enough for your business to be closed for a day or two. For example, if you had to close your business for a day because you and your staff members are attending a conference, that is not enough to constitute a business interruption. In order to file a claim, your business must generally be closed down for three or more days.

Financial Records Can Prove a Business Interruption 

The best way to prove that your business was interrupted, and that your company suffered losses as a result, are financial records. A Daytona Beach business interruption insurance claims lawyer will collect your financial statements and income tax returns and compare them to your current sales records and other financial statements. This comparison can establish the costs and expenses you lost while your business was closed.

If your business had to close because it was damaged, you should also carefully document all damage sustained. This can also help prove that your business was interrupted and that you lost revenue as a result. For example, if a pipe burst and damaged walls, ceilings, and your product, you may have to close your doors temporarily to fix the damage. Documenting this damage, as well as the revenue you lost due to the interruption, can help you recover these losses.

The Importance of Including All Losses in a Claim 

Once you have recovered your losses due to a business interruption, you cannot go back to the insurance company for additional losses you discovered later. It is for this reason that it is critical to include all losses in your claim the first time. For example, if a burst pipe destroyed your signage, you may have to replace it. That alone can cost thousands of dollars, but you may also have to hire an electrician to ensure there is no electrical damage. It is important to review exactly what you will need for a repair or replacement, so nothing is overlooked in your claim.

Our Business Interruption Insurance Claims Lawyer in Daytona Beach Can Help with Your Claim 

If your business has been interrupted and you suffered losses as a result, you can file a claim. However, you should not do this alone. At Bundza & Rodriguez, our Daytona Beach business interruption insurance claims lawyer can help you through the process and help ensure you receive the full and fair settlement you deserve. Call us now at 386-252-5170 or contact us online to schedule a free consultation with one of our skilled attorneys.

Source:

myfloridacfo.com/docs-sf/insurance-consumer-advocate-libraries/ica-documents/business-interruption-coverage.pdf?sfvrsn=12f8084c_6