After Superstorm Sandy affected your business, you may be wondering if your physical damages will be covered in addition to the income your company lost due to this natural disaster. Before you begin the claims process and deal with the insurance company, read this article in order to understand business insurance claims so that you can get the most from your New Jersey commercial insurance claim.
It is important to understand your insurance policy before filing a Superstorm Sandy-related claim for damages. While the standard business insurance policies provide coverage for hurricane damage, some small business owners may have to work hard to get their business losses covered, even if they have the following coverage:
- Business interruption insurance – this type of coverage will compensate New Jersey business owners for profits they would have earned if physical damage to their structure did not occur and make their premises temporarily unusable. This amount, of course, would be based on the company’s financial records.
- Non-physical business interruption insurance – although rare, this type of insurance covers a company for business interruption losses even though there was not a direct physical loss to the structure. This means that if business owners, employees, or customers could not access the company’s structure due to an Order of Civil Authority, such as an evacuation, then that business may be covered for losses due to the restrictions that did not allow access to the business.
- Off-premises service interruption – this coverage would kick in if a business could not operate due to loss of power. Even if there is no direct physical damage to a business’s structure, a company may be covered for lost income that the power outage caused from Superstorm Sandy winds.
- Contingent business interruption insurance – this type of coverage would apply to other businesses not physically affected by Sandy, but were dependent on materials from a supplier that suffered a loss or could not operate during the natural disaster.
Sadly, businesses are drastically affected after a major disaster and it takes time to get a business back on track. If you need help understanding your policy or making sure your business gets compensated for every cent that is due to your company under your business insurance policy, call commercial insurance claim attorney Bill Voss at the Voss Law Firm at 888-614-7730 for a free consultation. You can also fill out a form on our website to get a free copy of our book Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.
