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Daytona Beach Lawyers > Blog > Business Interruption > What Is A Business Interruption Claim?

What Is A Business Interruption Claim?


Business interruptions are nothing new, but the fact that they are happening with more frequency has many business owners greatly concerned. Recent data has shown that 65 percent of business executives are currently very concerned about how a business interruption will impact their company in 2022 and 2023. The concern may be the reason why more businesses are purchasing business interruption policies. Below, our Daytona Beach business interruption insurance claims lawyer explains these policies, and whether your company needs one.

Understanding Business Interruption Insurance

It is a sad fact that approximately one in four businesses never open their doors again after being hit by a natural disaster. The main reasons for this is that business owners are often unable to overcome the increased expenses, lost profit, or the overall cost of rebuilding. To prevent this from happening and to allow their business to remain sustainable, savvy business owners purchase business interruption insurance.

Simply put, business interruption insurance provides financial protection for business owners in the event of a natural disaster in the future. As a business owner, you can obtain coverage after purchasing a policy if the following apply:

  • Your business is damaged or suffers a direct physical loss that requires operations to stop,
  • Your business is damaged or suffers a direct physical loss that results in customers being unable to access the property, or
  • Your business is damaged or suffers a direct physical loss due to a government shutdown.

What Coverage Does Business Interruption Insurance Provide?

Business interruption insurance policies are often bundled together with general property and liability policies. However, the two are distinct policies and they provide coverage for different things. A property and liability policy will cover any actual damage to the property of the business. On the other hand, business interruption insurance covers losses such as the cost of operating off-site, fixed expenses incurred due to the business interruption, and the loss of revenue and income due to business closures.

Generally speaking, business interruption insurance provides coverage for losses such as the rent your business pays, workers’ wages, the cost of relocation, and other expenses. Contingent business interruption policies are also available, and these will provide coverage if there is a disruption in the supply change. Extended business interruption policies provide coverage for the losses incurred while repairs are being made to the business so it can operate at full capacity again.

Our Business Interruption Insurance Claims Lawyers in Daytona Beach Can Obtain the Coverage You Need

You may think that because you have purchased a policy protecting your business from any interruptions that obtaining coverage is easy. Unfortunately, that is rarely the case. Insurance companies are for-profit, and they try many tactics to reduce, deny, and delay claims. All of those tactics will hurt your business. At Bundza & Rodriguez, our Daytona Beach business interruption insurance claims lawyers will communicate with the insurer on your behalf so you obtain the full and fair coverage you need. Call us now at 386-252-5170 or contact us online to schedule a free consultation.




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