For business owners, there is nothing worse than being forced to close their doors indefinitely due to something they cannot control. When a natural disaster or a pandemic hits the state, country, or even the entire world, business owners incur a loss of revenue and experience business slowdowns.
Luckily, you may qualify for business interruption coverage, which can help a covered business owner replace lost income and pay for extra expenses associated with the business interruptions.
What is business interruption coverage, and is it even worth trying to file a business interruption claim in Florida?
Who Qualifies for Business Interruption Coverage?
Generally, businesses qualify for business interruption coverage when their loss of income occurs due to the physical damage to or loss of property that forces the business owner to suspend operations. While this coverage typically covers damages and losses due to hurricanes, storms, flooding, fires, and other natural disasters, other circumstances – such as a pandemic – might also qualify.
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What is Covered Under the Business Interruption Coverage?
When does it make sense to file a business interruption claim? In Florida, a typical business interruption insurance policy covers the following:
- Loss of income, revenue, and profits. A skilled business interruption insurance attorney will help you document and verify your loss of income by reviewing and collecting your sales records, financial statements, accounting records, tax returns, and other documents.
- Temporary location costs. When a natural disaster or another disastrous event happens, some businesses have no choice but to move to a temporary location, especially if their regular location requires weeks or months of repairs. Typically, business interruption coverage can be used to cover the cost of renting a temporary location, paying or leasing necessary hardware, tools, equipment, and other expenses associated with moving to another area.
- The cost of retraining employees. When a business moves to a new location or needs to replace new hardware or equipment, it will be required to retrain workers to teach them how to use the new equipment.
- The payment of fixed expenses. Even if your business must suspend operations due to the circumstances beyond your control, you may still be required to pay fixed expenses, including insurance fees, rent, mortgages, taxes, and others.
- The payment of employee benefits and pay. Additionally, business interruption insurance covers any regular payments that must be made to workers, even if they are not working.
What to Do if Your Business Interruption Insurance Claim Was Denied
Unfortunately, insurance companies routinely deny business interruption claims in Florida. If you think that your business interruption claim was not handled properly, it is best to consult with a knowledgeable attorney. It is possible to resubmit your claim or challenge the denial of your claim. Regardless of why your business interruption claim was denied, you need an experienced attorney to review your case. Contact our Boca Raton business interruption attorneys at Ged Lawyers, LLP, for a case review. Call at 561-995-1966 to discuss your options and challenge the denial of your claim.