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What is business interruption coverage and what does it cover?

Business Interruption coverage, or "B.I." insurance, is typically sold as part of a business property insurance package. This type of insurance is designed to cover losses a business sustains as a result of physical damage to the insured property. This type of insurance usually covers a loss of income - or business interruption - that occurs from an event. Other types of expenses may also be covered, such as costs of shutting down the business, evacuation, repopulation of employees and restoration of operations following the storm.

Most of the time, B.I. insurance also covers business interruption arising from a mandate by "civil authorities" that prohibits the use of the business premises. In other words, if the state or local authorities prohibit access to the business location, that could trigger B.I. coverage. Examples include the interruption of business that arises from a mandatory evacuation order, or an order prohibiting residents or businesses from returning following a storm.

Business interruption policies differ in their language, and what may be covered under one policy may be excluded under another. Most importantly, to properly address a B.I. claim, you must examine, photograph and document the physical damage to the premises that results in the business interruption. Often independent experts are required to properly document and prove a business interruption claim.

If No Recovery No Fee Guarenteed

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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