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Business Interruption Myths: BI Coverage Is a Blank Check

This week we have been discussing five common myths associated with business interruption coverage. One of the most troubling business interruption insurance myths is that coverage can help you out of all problems related to halts in your business, from a day when your servers go down to a day when business is just bad. But this is absolutely not true. Business interruption is not a blank check and there are a number of limitations placed on your business interruption coverage. Here are six common limitations:

  • Business interruption coverage is only triggered under specific circumstances. Your business must be unable to operate due to damage or losses that prevent the business’ employees from working or prevent customers from accessing the business.
  • Business interruption insurance does not usually cover suspensions or slowdowns, only an event that stops operations over a significant period of time.
  • Business interruption coverage does not usually begin until a few days after the event that stopped your ability to do business.
  • Business interruption insurance does not go on forever. Many policies stop coverage after business has been halted for a year.
  • Business interruption does not cover unfavorable business conditions.
  • Business interruption does not often cover costs outside of lost net income, temporary relocation expenses, and other limited ongoing expenses.

Remember: all insurance policies are different. Make sure that you read your business insurance policy closely and that you understand clearly the situations in which you may file a business interruption claim.

If you need assistance with your business interruption claim, we are here to help. Call the Voss Law Firm at 888-614-7730 to speak with a knowledgeable, experienced business claim attorney.

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The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

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