Can a Public Adjuster Help with a Business Interruption Insurance Claim?

Business interruption insurance protects you financially in case your business has to close its doors due to a natural disaster, serious property damage, or potentially even a shutdown of one of your suppliers. And considering the events of the last year or so– from the pandemic to civil unrest – it’s vital for businesses to be aware of the range of incidents that can lead to business interruptions. If you’re in the process of filing a claim, you may be wondering which damages are covered under your policy and whether your insurer is accurately calculating your losses.

Here’s some insight into what business interruption insurance covers and how to get help with your claim.

What does business interruption insurance cover?

In the event that your business has to close its doors, business interruption insurance covers lost income and operating expenses. For example, let’s say a retail store is flooded and has to close its doors for several days while the issue is remediated. The retailer stands to lose thousands of dollars in revenue due to being closed, especially if the closure happens during a peak season.

The retailer’s property insurance may cover the repairs, but what about their lost income? And what about lost wages and expenses that need to be paid, even though the store is closed? That’s where business interruption insurance comes in. Depending on the policy, the retailer’s insurance may cover the following:

• Lost profits
• Rent or mortgage payments
• Payroll
• Loan payments
  

It’s also possible to add additional coverages to a business interruption policy:

• Extra expenses coverage for temporary relocation, equipment replacement, and hiring more employees
• Coverage for expenses incurred due to disruption in utility services
• Coverage for when a civil authority prohibits access to a business’ premises
  

You can also add contingent business interruption coverage to cover business losses caused by events on property you don’t own. For example, if a manufacturer relies on a few suppliers to provide parts for its products, and two of those suppliers have to shut down due to damage caused by civil unrest, the manufacturer may have to shut down its operations. While the manufacturer wasn’t directly affected by the civil unrest, it still led to losses for their business. Contingent coverage would cover lost income and additional expenses. 

Why business interruption claims are challenging

Business interruptions don’t happen all on their own. They’re caused by an event, like a pandemic, civil unrest, or natural disaster in the examples above. You’ve already got your hands full with the original event, and dealing with your business closure just adds complexity. Filing multiple claims can easily become overwhelming. Calculating your total losses, and understanding which damage is covered under each policy can be challenging.

Like any other insurance policy, business interruption coverage has its limitations. For example, if your business interruption policy is a part of your commercial property insurance coverage, then it will only extend to events covered by the core policy. Understanding these nuances can make all the difference in selecting the right coverage and maximizing your settlement when you need to file a claim. 

How a public adjuster can help

One easy way to simplify the process of filing a business interruption claim is to work with a public adjuster with experience helping businesses like yours in similar situations. They will understand the true extent of the losses your business experienced as well as the terms of your policy. They will put together a comprehensive claim that takes full advantage of all of the coverage outlined in your policy. 

Some of the most common challenges of settling business interruption claims is identifying the indemnity period, properly estimating valuations, and understanding the full scope of damage, particularly if it’s extensive (such as a chain restaurant having to close all of its locations in a particular region due to supply chain issues). If the insurance company doesn’t properly assess your losses, your payout may fall short of your needs. 

A public adjuster’s job is to make sure you get the maximum payout outlined in your policy. They can also help you get your business back up and running more quickly. The less time you spend on communications and negotiations with the insurance company, the more time you have to focus on getting your doors open. And, if your adjuster is able to get the claim settled more quickly than you would have on your own, you’ll be able to focus on your operations with a clear understanding of what your payout will be, and how long you’ll be covered. 

Work with a public adjuster who understands business interruptions

At Ironclaim, we’ve helped businesses and government entities recoup their losses by taking full advantage of their policy. We understand the nuances of business interruption claims and the typical pitfalls that come with them. And since a business interruption claim usually is filed alongside a property claim, our experience with a variety of commercial insurance policies enables us to understand what’s covered under each policy and how to ensure you get  every dollar you’re entitled to. Reach out to us today to get started.