Business interruption claims mean to cover the financial losses that business owners suffer when they have to close up shop and relocate because of unforeseen circumstances, like fires and floods. But the business interruption claim policy that you carry on your business property and liability coverage may not always work how it’s supposed to. Consequently, it has left many business owners wondering what their policy covers and whether their insurance company will take care of their losses in an appropriate amount of time.
1. What is Business Interruption Claims?
Business interruption claims are a type of claim you can make if your business has suffered a negative impact due to circumstances beyond human control, such as the COVID-19 pandemic. That type of claim is for those who have lost revenue or suffered economic damages due to the virus. The key here is that this is a different form of a business interruption than what would happen if there were other kinds of natural disasters such as earthquakes, hurricanes, or even fires.
As a business owner, you should utilize such a claim to recover losses to continue operating your business with minimal disruption during the pandemic. However, it’s important not to exaggerate any damage you may have suffered. You should therefore contact a team of reliable Business interruption attorneys in Las Vegas to go over all the details to get the most out of your claim and get back on track. Remember, this is just one more reason why proper insurance coverage for your company is so vital!
2. What are Some Important Policy Features?
Policies that cover business interruption claims are different, and there’s no one-size-fits-all. In the event of a COVID-19 pandemic, you will want to look into the following:
- The length of time your business can remain closed while still being covered. That is crucial because most policies have set limitations
- What types of expenses are not under your policy? For example, some policies do not cover wages for sustaining employees while under closure.
- It’s essential to find out how much money you can make if your business remains closed for a certain amount of time and how much it would cost if it doesn’t.
Typically, business interruption claims include reimbursement for loss of income when the business cannot operate. However, these policies usually do not provide coverage if you have a temporary shutdown due to a natural disaster. In this situation, it may be more beneficial to have property insurance with a specified amount of coverage.
3. How Do I Prove My Damages and Losses?
If you are claiming damages and losses, you should be aware that there are different levels of proof depending on the type of damage you’re claiming. For example, proving your lost profits due to not operating your business for an extended period will require more than just speculation about what might have happened if you had been able to run your business during this time.
You will need documentary evidence such as purchase orders, delivery schedules, and financial records showing the costs incurred by not running your business (e.g., supplies, employees’ wages). However, it’s crucial to include all timelines in your documentation when presenting your claims. Otherwise, it could cost you valuable time recovering from COVID-19’s effects – or worse – leave you without any recourse. Your business interruption lawyer should help you to compile these documents and present them in the best possible light to prove your claim.
4. Are There Time Limits?
Different policies have varied time limits to file your business interruption claims. However, the sooner you can file a claim, the better, as it will give you a better chance of receiving compensation for the loss of profits incurred due to non-operations due to the COVID-19 outbreak. Hence, since most policies have their own statutes of limitation with varying periods, the rules regarding when you should file a lawsuit vary depending on your policy.
It’s, therefore, vital to contact a reliable business interruption claims attorney to ensure that you are filing a timely and accurate claim for your company. There are many types of insurance coverage for various industries, so make sure you speak with an attorney who is well versed in COVID-19-related business interruptions and has the skills to guide you through this challenging process.
5. What is a Civil Authority Order?
A Civil Authority Order is an order that a governmental agency issues when dealing with an emergency such as the COVID-19 pandemic. Local, state, or federal authorities may issue orders, including closing businesses. There are also agencies at the international level, such as the WHO (World Health Organization) and ICAO (International Civil Aviation Organization).
These agencies help countries deal with health emergencies like the COVID-19 pandemic. However, if your business suffers under these circumstances, contact a business interruption attorney to help you understand your policy. Some insurance policies will cover civil authority orders, and some may not. In general, it’s best to contact your business interruption lawyer for more information on what your policy covers.
Business interruption claims are a form of property damage that you can file on behalf of your business for losses incurred to your premises or business operations due to circumstances beyond human control, such as COVID-19. If COVID-19 impacted your business, contact an experienced legal firm specializing in business interruption claims for more information about how they can help you understand your policy and file a successful claim.