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If you suffer losses because your business is prevented from operating, the definition of a qualifying interruption\u00a0<\/span>under a\u00a0business interruption policy<\/a> can make a tremendous difference in your ability to receive compensation, so it\u2019s vital to understand what your policy considers a bona fide interruption<\/span>.\u00a0<\/span><\/p>\n Although policies can vary widely, we discuss incidents that are often covered and those that may not be, as well as areas where disputes commonly arise.<\/span><\/p>\n Business interruption insurance covers losses that result when an unforeseeable event, such as a fire or natural disaster, disturbs a business\u2019s ordinary operations.<\/span><\/p>\n Business interruption insurance may provide funds to cover:<\/span><\/p>\n Business interruption coverage is often added to a <\/span>commercial property insurance<\/span><\/a> policy, but in some situations it can also be sold as a standalone policy.\u00a0<\/span><\/p>\n Generally, it complements commercial property coverage because it provides resources to cover different expenses. Commercial property insurance covers the cost of repairing damage to business property, and business interruption insurance provides funds to offset losses caused by that damage.<\/span><\/p>\n While many business interruption policies require a covered physical loss or damage before business income coverage applies, a qualifying interruption that triggers coverage could be defined in many different ways. The policy terms determine what counts as an eligible interruption and what doesn\u2019t.<\/span><\/p>\n A business interruption policy may recognize several types of situations as qualifying for coverage, but generally, coverage will not apply simply because an incident reduced income. The factor must usually meet some specific parameters established in the policy.\u00a0<\/span><\/p>\n The interruption may involve a complete shutdown of business, but a reduction in operations might also qualify. Often, coverage is triggered by an event that prevents the business owner from accessing the premises or prevents the business from operating normally. Understanding what the policy language covers and what it excludes is vital because there is no standard definition.<\/span><\/p>\n A business interruption policy may cover losses triggered by a variety of events, but you should read the policy details closely because certain events may be specifically excluded.<\/span><\/p>\n If a fire or explosion damages the building where a business is located, it often forces the business to close for a substantial period. When it reopens, it may be able to operate only at reduced capacity.<\/span><\/p>\n Smoke often causes far more damage than people expect. Smoke damage from fires in adjacent areas or even separate buildings can interrupt a business.<\/span><\/p>\n Even businesses not near a flood zone can be damaged by water from burst pipes, failed sprinkler systems, fire response, leaking air conditioners, and other sources. Some water events may be ineligible for coverage or may require a separate rider. Business interruption coverage usually cannot be added to standard traditional flood insurance policies, but some private flood insurance policies may cover loss of revenue caused by flooding.<\/span><\/p>\n Throughout Florida, the risk of business interruption\u00a0<\/span>from\u00a0hurricane and windstorm<\/a> damage<\/span>\u00a0is a year-long threat. However, some policies may exclude losses caused by damage from certain types of storms, so it is critical to read the fine print.<\/span><\/p>\n If essential equipment isn\u2019t functioning or facilities are damaged in other unexpected ways, a business interruption policy may also cover losses from these problems.<\/span><\/p>\n Insurance companies often deny business interruption claims for a variety of reasons, whether legitimate or not. The company may claim that:<\/span><\/p>\n When a policyholder and insurer disagree on a claim, it can\u00a0<\/span>help to consult an\u00a0insurance attorney<\/a> who can\u00a0<\/span>explain to the insurer why the claimed losses should be covered.<\/span><\/p>\n While a policy may require complete closure before losses can be reimbursed, incidents that reduce business can generally be covered even if the business can operate on a limited basis.<\/span><\/p>\n No, you usually must provide evidence of property damage or other qualifying incident that caused the decrease in revenue. To have that loss covered, you must present evidence showing how the damage led to a decrease in revenue.<\/span><\/p>\n To document a business interruption insurance claim, it is helpful to present:<\/span><\/p>\n An insurance attorney can help you document the claim, so you receive the full amount owed under your policy.<\/span><\/p>\n When a business owner has the foresight to purchase business interruption coverage, it is very frustrating to see the insurance company deny a claim or refuse to cover all the losses. Unfortunately, it happens frequently.<\/span><\/p>\n You may be able to prevent problems by thoroughly documenting your claim. However, if a claim is denied inappropriately and an internal appeal fails, then the insurance company could be held accountable in court.\u00a0<\/span><\/p>\n At <\/span>Ver Ploeg & Marino<\/span><\/a>, we have helped policyholders resolve disputes with their insurance companies for decades, and we know there may be several options that can lead to favorable results. To discuss your rights and options in your particular situation, <\/span>schedule a consultation<\/span><\/a> with our experienced team today. <\/span><\/p>\nWhat is Business Interruption Insurance?<\/span><\/h2>\n
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What Does \u201cInterruption\u201d Mean in Business Interruption Insurance?<\/span><\/h2>\n
What Types of Events May Be Covered as a Business Interruption?<\/span><\/h2>\n
Fire and Smoke Damage<\/span><\/h3>\n
Water Damage<\/span><\/h3>\n
Damage from Hurricanes and Other Storms<\/span><\/h3>\n
Other Building or Equipment Damage<\/span><\/h3>\n
What Happens When the Insurance Company Doesn\u2019t Accept Your Interruption?<\/span><\/h2>\n
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FAQs About Business Interruption Coverage<\/span><\/h2>\n
Does a business have to be completely closed to have an \u201cinterruption?\u201d<\/span><\/h3>\n
Can you prove business interruption by showing that revenues have decreased?<\/span><\/h3>\n
How do you document a business interruption insurance claim?<\/span><\/h3>\n
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Ver Ploeg & Marino Works to Resolve Business Interruption Claims<\/span><\/h2>\n