Understanding The Basics of a Business Interruption Claim

Natural disasters such as hurricanes or tornadoes can cause business interruption. When the calamity causes business damage and you are forced to cease operations, this translates to lost revenue for your business. The good news is that you can recover the lost income by filing a business interruption claim. According to the website of Williams Kherkher, a business interruption claim is designed to return your business to the same position it was before disaster struck it.

Recovering from a disaster can be difficult for your business financially. If your insurance policy includes business interruption, you might be able to recover some of the income you will lose as a result of the interruption. However, filing a claim can be a complicated process. Here is a short guide on filing business claims:

Document the evidence

The physical damage to your business is key to recovering compensation for interruption. It needs to be substantial enough to cause an interruption. Documenting the damage means taking pictures before any repairs can be undertaken. Some damage may be invisible to the naked eye and will need a construction expert to assess the extent of the damage.

Understand your policy

You need to fully understand the coverage that is included in your business interruption policy and how losses are calculated. This will ensure that you are prepared for any eventual problems. Do not claim what you are not covered for.

Business as usual

As much as possible, continue operating as if you have no coverage. It is your duty to mitigate any losses because there is no assurance on the amount of compensation that you will receive from your insurance company. Until the insurer has committed to shoulder the losses, you should take a look at your situation from a business perspective.

In order to be successful with your business interruption claim, you need to prepare damage reports, repair estimates, and other property claim related information.