Business interruption insurance can truly make or break a business after a commercial claim is filed. Normal business insurance policies cover things like property insurance and liability, but they don't cover you when your business has to shut down for an undetermined about of time. Sure, your insurance is covering the physical damage to your building, but who is covering the cash flow that isn't coming in while the building is fixed? That's where business interruption insurance can save a business.
In short, business interruption insurance replaces business income that has been lost as the result of some type of disaster. You need to be able to show the amount of profits you probably would have earned if your business had been able to open, as well as expenses like rent and bills that don't go away when the business isn't operating. This insurance may also cover salaries of employees that are losing money when the business is closed.
If you decide to buy business interruption insurance for your business, you are making the right decision—but just make sure you understand what may not be covered. When you are purchasing the policy, ask your insurance agent about times when the business interruption insurance would not apply. That way, if/when it does happen, you are not totally surprised that your claim was denied.
If your commercial insurance claim was denied, but it should not have been, it's time to get in touch with an insurance litigation attorney. Contact The Voss Law Firm today for a free consultation at 888-614-7730.