Following a natural disaster or other catastrophic event, your business may be non-operational for a period of time. Even if you have no incoming revenue, you still are responsible for your business’ operating expenses during the shutdown and rebuilding period. Business interruption insurance is meant to help to cover lost income while you get your business up and running again. If you have questions about your business interruption coverage, or if your carrier is refusing to pay, an experienced New York insurance law attorney at Hiller, PC can help protect your rights.
Business Interruption Coverage Basics
Business interruption coverage differs from policy to policy. Generally, it covers loss of income while the business cannot operate in the aftermath of a disaster. The lost income may be due a disaster-related closing of the business or related to the rebuilding process following a disaster. Depending on the terms of your policy, it may cover salaries for key employees, though it generally will not cover salaries for all employees. Your policy may include coverage for the rental of temporary equipment and facilities, and coverage for income shortfalls once your business reopens.
Most policies require that the loss be sustained as a result of a catastrophic event directly related to your physical premises (e.g., a fire), and not an event occurring in another location that negatively affects your business. (To protect against this, you may wish to consider contingent business interruption insurance, which would cover losses sustained by you as a result of damages suffered by a key supplier.)
Determining the value of your claim can be a complicated matter. Your New York insurance law attorney will help to calculate the amount of your loss by reviewing your business financial statements to determine the business’ historical revenue and expenses.
Most policies have a waiting period before business interruption coverage kicks in, and coverage is not retroactive to the day of the event. Consequently, it is important to file your claim promptly, so that you are deemed covered at the earliest date possible.
Contact An Experienced Insurance Law Attorney At Hiller, PC
An experienced New York insurance law attorney at Hiller, PC can review your policy, determine the extent of your business interruption coverage, and keep the insurance company honest. We can help you calculate your losses and file your claim. If the insurer refuses to honor your coverage, to the full extent you are owed, we will attempt to negotiate a settlement. Should negotiations stall, our trial team is prepared to take your claim to court. We only represent policyholders, and we get results. Call us, at 212-319-4000, to schedule a free initial consultation, or contact us using the email form on this page.
Learn more: Proving a Business Interruption Claim