It’s a fact of life for all business owners: things can and will go wrong. Whether the issue is something that can be fixed or something that requires you to close your doors temporarily–purchasing business interruption insurance is a vital choice to help mitigate the harm that could result from unexpected circumstances. Business interruption insurance enables you to protect your business and protect your employees–but you have to file a claim to get the assistance you need.
In these challenging business situations, it’s crucial that you know how to file a business interruption claim correctly if you face an unexpected event that would cause your normal business to shut down. Submitting a claim can be time-consuming and requires thorough preparation. Here are five best practices to keep in mind.
1. Read Your Business Interruption Policy Thoroughly
When filing your claim, it’s imperative that you read your policy in its entirety and how to present the facts to your insurance company. Understanding the policy’s limits and deductibles beforehand will save you a lot of stress and wasted time if the business interruption isn’t covered. Ask yourself, “How can I make the strongest possible case that this business interruption qualifies for coverage?”
Here are some common coverages you may find in your policy:
- Business income coverage: This coverage pays income that the business would have received if the loss had not occurred. It includes everyday operating expenses, payroll, and net profit before taxes.
- Extra expense coverage: This coverage will pay for your business to move temporarily to a new location to continue your operations. It also covers feasible and essential expenses to keep your business running while the property is being restored.
- Contingent Property Insurance or Dependent Property Insurance: This coverage is also known as Supply Chain coverage and will cover a loss of income due to property damage at a customer location or key supplier.
2. Report the Loss To Your Business Insurance Company
Reach out to your insurance company to inform them that you need to file a claim on your policy. They will provide you with the mandatory reporting documentation that they require to begin the claims process. Contacting them as soon as you can will additionally create a record of your initial loss date, which can help you avoid issues with policy reporting deadlines. Waiting too long to report could result in your claim being delayed or even denied.
3. Examine the Loss and Calculate Your Business Interruption Loss.
By reviewing all aspects of your company’s operations, you can determine what has been affected and if profits have been impacted entirely or partially. Additionally, this review will help you determine the length of time that your business will be inoperable.
It’s also very important to make sure that your business operational and financial records are impeccable before and after the incident. You may need to gather additional details to calculate your business interruption loss, such as:
- Extra costs incurred
- Loss of customers and sales
- Fixed costs
- Cost savings
If your claim is based on the damage that affects your brick and mortar location, it must be substantial enough to cause the interruption. It is crucial to conduct a thorough examination, take photos, and document any damage in detail for your business interruption claim.
Keep in mind: A successful insurance claim requires solid and substantial evidence of how much you actually lost.
4. Hire a Public Insurance Adjuster to Assist.
If you believe your claim settlement is large and the process cumbersome–hiring a public insurance adjuster like our team at Maximum Public Adjusters will give you peace of mind. A public insurance adjuster can help you maximize your recovery from a business-related loss. Insurers have strict policies and regulations when it comes to business interruption claims. An experienced adjuster will work to decipher your business policy’s language and find the best solution for your situation.
While you’re spending most of your time getting your business back up and running, a public insurance adjuster handles the heavy lifting with your insurance company. We have the necessary knowledge to ensure your claim is complete and place you, the insured, as our top priority.
When your business is forced to close suddenly, whether it’s due to the damage caused by fire, flood, hurricane, or some other unforeseen event, it can be challenging for the owner. It also can be tough on the employees if they are left without a paycheck and facing financial hardship. Implement these tips to make sure your claim is in the best position to be approved and to get back to business as usual.
About Maximum Public Adjusters
At Maximum Adjustment Inc, we are on a mission to ensure our clients get fair and full claim payments from their insurance companies in the event of a business interruption claim.
Having someone on your side helps you navigate the insurance claim process is to your advantage. Hiring a public adjuster saves time, reduces stress, and produces a better settlement from the insurance company. Contact us today to learn more or discuss your insurance claim.