Business Interruption Insurance Could Save Businesses
The novel coronavirus has had an unprecedented impact on our daily lives, with authorities instituting strict mandates in order to prevent the spread of COVID-19. These directives have created significant losses for businesses and individuals that struggle to comply with required closures, cancellations and interruptions. Now, businesses are unsure of what their future may hold after suffering from such devastating financial losses.
Whether it be by governmental command or voluntary, COVID-19 has prompted businesses of all kinds to alter, limit their operations, or close their doors entirely. However, there are steps that businesses can take now to put themselves in the best position to preserve their insurance coverage. Business interruption insurance is intended for multiple reasons. Most importantly, business interruption insurance promises to compensate the insured for income that was lost during the time period of the interruption which resulted from a disaster, such as a coronavirus.
Business interruption insurance is intended to allow a business to return to normal operations after a disaster has occurred and is typically part of a business owner’s insurance policy. Typically, business interruption insurance applies to coverage for lost income and extra expenses incurred after disasters, such as fire, hail, wind, vandalism, or theft. However, this type of insurance may be applicable to businesses that have been forced to shut down in response to the coronavirus.
With business interruption insurance, you may be able to rebuild your business after the disaster has passed, but insurance companies have been known to take advantage of vulnerable policyholders. It is important for businesses and attorneys to review business interruption policies before or during the decision-making process. If you are a business owner who was required to cease operations due to the COVID-19 pandemic, the attorneys at Spiros Law, P.C. are ready to assist you in obtaining or preserving your business interruption insurance.
Most insurance policies require notice of a claim within a very specific period of time or the claim is forfeited. It is advised that business owners move quickly as to not lose an opportunity to make a claim for their lost business income. By consulting with an attorney, business owners are more likely to maximize their likelihood of obtaining or protecting their business interruption coverage. If you have already put in a claim and your business interruption insurance claim was denied after a disaster, such as a coronavirus, a skilled attorney could help you secure a business income insurance recovery.
When filing a business interruption claim, it is important to have supporting documents, such as business expense reports, revenue reports, details regarding business history, and an employee roster among others. There are several elements that must be inspected when handling a business interruption claim, including utility costs, payroll taxes, and additional advertising. An attorney will be able to help you in making the best business decision, carefully documenting any losses, making a timely claim, addressing the insurer’s response, and handling communications.
Disasters, like the coronavirus, are unexpected and can incur devastating financial losses to business owners. Contact one of our experienced attorneys today at (815) 929-9292 for help in handling your business interruption insurance claim. Though our physical offices are currently closed during the Illinois shelter-in-place, we are fortunate to have the technology and dedicated team to continue to work passionately and effectively remotely. Our staff is working and available to speak with you over the phone, through a video conference, and on email.