Does your business have business interruption insurance? Do you have the right amount? What does it cover exactly? If you aren’t sure about the answers to these questions, you might be on your way to making one of the five most common business interruption insurance mistakes:
- Not getting coverage. Some business owners simply do not think that they will be affected by a disaster or the victim of property damage. Others don’t think that their profits will be significantly harmed if something goes wrong. Still others don’t think it is worth the trouble or money. Sadly, a significant number of businesses fail each year due to business interruptions.
- Underestimating the amount of coverage you need. Many business owners understand the need for coverage, but they don’t crunch the numbers before they decide just how much coverage they need. Having business interruption coverage won’t help much if your claim still doesn’t save your business from going under.
- Not reading your policy closely. Quick: what types of damage does your business interruption insurance cover? If you can’t confidently answer that question, you should speak to your attorney and your insurance agent—and you should sit down and read your policy carefully. There are few things in life that we buy before scrutinizing them closely, but for some reason, people will buy insurance without asking questions or reading the contract thoroughly.
- Not preparing your claim correctly. Understanding your losses completely after your business is damaged is a very difficult science. Understanding which of these losses is covered by your business interruption insurance is even more complicated. Making sure that you calculate and ask for the right amount is vital.
- Not negotiating your claim correctly. You’ve gotten this far, congratulations! Now, are you going to settle your claim for an amount that won’t be adequate to pay for your losses or save your business? Having an experienced and knowledgeable attorney on your side during the negotiation process could be the difference between getting what you need and not getting a just amount.
A Texas business interruption attorney can help you avoid these pitfalls and help you navigate your way to a successful and fair settlement after your business is damaged. To learn more about our services or to speak with one of our lawyers today, call the Voss Law Firm at 888-614-7730.