Your commercial insurance policy should have “business interruption coverage” that covers you for revenues that are lost due to forced or unforeseen closures. Business interruption insurance is designed to offer financial protection to companies that have suffered a loss of income as a result of a disaster.
In the Sunshine State, these disasters are more often than not natural disasters: hurricanes, floods, or windstorms. However, the SARS outbreak in 2003 and the current COVID-19 pandemic are also instances in which businesses have been forced to close and suffer economic losses.
The standard formula for determining the value of a business interruption insurance claim is:
Operating Costs + Net Profits + Approved Add’l Costs.
The numbers are calculated for a specific timeframe during which the disaster was ongoing. For natural disasters, these timeframes are fairly easy to compute. The ongoing battle with the coronavirus pandemic may prove to be more difficult. Business owners and insurance companies will definitely disagree on the extent of the damage.
Insurance companies are loath to shell out money for your claims, and they will use any excuse to deny you, so the more meticulously catalogued the costs the better. Having an experienced insurance lawyer review your policy can increase your chance of a successful business interruption insurance claim.
Our firm can help you assess and file your business interruption insurance claim. Especially if your business has been hurt by the COVID-19 outbreak, you should get advice from a qualified attorney. Call us at (561)372-3800.