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Does Your Small Business Have Business Interruption Insurance?

According to information from the Insurance Information Institute, most businesses have insurance to cover loss of business due to physical property damage; however, a survey by the National Association of Insurance Commissioners discovered that only 35 percent of small businesses—those with fewer than 100 employees—had business interruption insurance. This leads us to ask the question: Do you have business interruption coverage?

Importance of Business Interruption Insurance

In the aftermath of Hurricane Sandy and other recent natural disasters, it is critical to remember that businesses can lose customers and profits during a catastrophe. If a business cannot open and operate due to physical property damage and the building needs to be restored, a business may need to temporarily move locations or close down. However, small businesses that lack enough insurance may be unable to weather the weeks of lost income.


During this time, a company can lose a lot of money that it would have normally earned. For this reason, it is important that small businesses have business interruption insurance (also known as business income insurance) so that they can file claims for lost sales. Having this coverage ensures a business’s income during an interruption. Additionally, it is wise to have extra expense coverage to pay for a temporary move and reasonable expenses to run the business while the damaged property is being restored.

Understanding Business Income Insurance

Even though business income insurance will cover some of a business’s losses, business owners often have to work hard to get their business interruption claims covered. Sadly, purchasing this insurance doesn’t automatically entitle business owners to a large check. This is because insurance companies look for every reason they can to undervalue or deny a claim. However, it is better to have this type of insurance than to go without it.


If you have taken the proper steps to protect your company from profit losses during a natural disaster and the insurance company is battling with you over every penny, you should talk with an experienced Texas insurance litigation attorney at the Voss Law Firm for help getting the settlement you deserve. Call for a free legal consultation at 888-614-7730 and also request a free copy of our book Disputes With Your Insurance Company: What All Consumers Need to Know

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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