Expert Guidance for Business Interruption Claims

When faced with business damage, whether it is due to weather, a fire or a plumbing issue, you can trust the expertise of Vargas Gonzalez Baldwin Delombard. As experienced business interruption lawyers, we are here to help you navigate the complexities of your situation and ensure you receive the compensation you deserve.

Specific Types of Business Interruptions

Business owners can empower themselves by understanding the various types of interruptions that can occur. This knowledge can help them identify potential risks and plan for the future. These interruptions can include physical damage, supply chain disruption, utility outages, evacuation orders, and loss of transportation accessibility.

Physical Damage

Direct damage to business property, such as buildings, machinery, and inventory, can make the premises unusable or unsafe for operations and make the inventory unsalable

Supply Chain Disruption

Natural disasters can disrupt the supply chain, causing delays or shortages in delivering essential materials, components, or products.

Utility Outages

A lack of utilities such as electricity, water, gas, or telecommunications can make it impossible to operate a business. This problem is serious for industries that rely on continuous power or communication.

Evacuation Orders

Evacuation orders may require businesses to stop operating to ensure the safety of employees and customers. It's crucial to understand the implications of these orders, as they can impact your business, and have a plan in place for handling them.

Loss of Transportation Accessibility

Damage to roads and bridges can disrupt normal business activities. Loss of transport accessibility is outside of your control, and in large-scale disasters, it can slow things down for months.

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Business Interruption Insurance What Does It Cover?

This type of coverage, also called income insurance, covers the many financial losses a business sustains after a catastrophic event, such as:

  • Payroll
  • Rent
  • Mortgage
  • Loans
  • Lost income
  • Money spent to retrain employees on new equipment

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You May Need Extra Coverage

Business interruption insurance does not cover other expenses, so it is crucial to take out extra coverage. For example, it does not cover floods, earthquakes, loss of utilities or pandemics. Not having adequate coverage can be a risky proposition. When rebuilding is necessary, you can purchase additional coverage against the cost of other losses, such as overtime.

Renting space to continue business operations is a wise move. Many owners must rebuild their establishments and require special equipment to be operational. Extra expense coverage can pay for this.

Extra expense coverage may already be part of your business owner’s coverage. If not, you cannot buy additional coverage on your own. It must be part of another insurance policy. Talking to your insurance broker will be helpful.

Risks With Business Interruption Insurance

There are potential risks with business interruption insurance, such as not detailing all income before a calamity occurs. For instance, you must list all observable income, such as reduced sales. Non-observable income includes loss of reputation and future income. Understanding these risks is essential to ensure your policy covers all potential income losses.

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Business Interruption FAQ

Does business interruption insurance cover pandemics?

How can I ensure my insurance policy is comprehensive?

What types of events are covered by business interruption insurance?

What is not covered by business interruption insurance?

How is the payout amount determined?

How long does business interruption insurance coverage last?

Do I need to provide documentation to support my claim?

Can I claim for partial interruptions to my business?

Does business interruption insurance cover pandemics?

Business interruption insurance does not cover pandemics. You may need additional coverage for such events. Your business interruption lawyer can help.

How can I ensure my insurance policy is comprehensive?

Reviewing your policy with a knowledgeable lawyer or insurance broker is essential. Taking this step will help you ensure that your policy covers all potential risks and gaps, giving you peace of mind that you are protected.

What types of events are covered by business interruption insurance?

Business interruption insurance covers fires, hurricanes, floods, other natural disasters, vandalism, and theft. However, it's important to note that not all policies are identical, and some may have specific exclusions or limitations. It's crucial to review your policy and understand its terms and conditions.

What is not covered by business interruption insurance?

Business interruption insurance does not cover floods, earthquakes, loss of utilities, pandemics, or damage that is not physical. You may need additional policies to cover these risks.

How is the payout amount determined?

The payout is calculated using the business's historical financial records, projected future income, and interruption duration.

How long does business interruption insurance coverage last?

The duration of coverage varies depending on the policy but lasts until the business resumes normal operations, up to a specified maximum period.

Do I need to provide documentation to support my claim?

You must provide detailed financial records, proof of income, expenses, and documentation of the interruption's impact on your business.

Can I claim for partial interruptions to my business?

Yes, partial interruptions, such as a significant slowdown in business operations due to a covered event, can also be covered.

How an Attorney Can Help with Business Interruption Insurance

To navigate the complex world of insurance claims after a natural disaster, rely on the expertise of a lawyer specializing in this area. At Vargas Gonzalez Baldwin Delombard, we offer a range of services to assist businesses in this process. We can discuss your current insurance strategy and how it protects you, help you file a claim, and negotiate with your insurer on your behalf. Rest assured, we are here to support you.

Our legal team can negotiate a settlement if your insurer refuses to pay your insurance policy. We can also help you understand the terms and conditions of your policy, ensuring you get the maximum benefit. If negotiations are unsuccessful due to an insurer’s refusal to honor their contract, our litigators can take the case to court, fighting for your rights and fair compensation.

We understand that cash may be tight after a natural disaster, and we work on a contingency basis, meaning you will not pay us until you win your case. Our legal team will leave no stone unturned in our search for justice, and you can rest assured that we are committed to fighting for your rights and fair compensation.

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Vargas Gonzalez Baldwin and Delombard

Don't wait until disaster strikes. Schedule a free case review with Vargas Gonzalez Baldwin Delombard and learn about your options, hear answers to your questions, and understand how we will approach your case. Contact us online to get started. We are available in Miami, Orlando, and Dallas.

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