Business Interruption Insurance

Florida Business Interruption Insurance Attorneys Whittel & Melton

Helping Business Owners in Tampa, Ocala, The Villages, Gainesville, Clearwater, and St. Petersburg.

The spread of COVID-19, commonly known as the coronavirus, has led to shutdowns of many businesses, causing a loss of income across all sectors. To offset the significant disruptions, many small and medium-sized enterprises (SMBs) are looking at their business interruption insurance to soften the blow. However, the safety net they thought they were paying into may not be there.

With COVID-19, insurance coverage will depend on the policy’s terms and conditions and the circumstances surrounding a company’s loss. Successful business disruption coverage claims for viruses are uncommon.

The laws surrounding pandemics and epidemics connected to human infectious diseases are scarce in the United States since these are not regular happenings.

What is Business Interruption Insurance?

Business interruption insurance, also known as business income insurance, can help you pay bills, replace lost income, and cover payroll when a covered unplanned occasion temporarily forces your business to close.

Most SMBs carry some type of business interruption insurance. In Florida, insurance policies usually protect homeowners from natural disasters like hurricanes, flooding, and tornadoes.

Business interruption insurance is not typically a stand-alone policy. It usually is part of a more extensive commercial property insurance policy.

Let’s say your business suffers a hurricane. Commercial property insurance would cover the actual physical damages, and business interruption insurance would cover the lost net income.

Business interruption coverage is supposed to protect businesses from economic losses suffered when they have to close because of unforeseen dangers. This coverage helps a company recover the revenue it would have earned without any disruptions to its business operations.

If an unexpected disaster forces your business to shut down, relocate, or rebuild, business interruption insurance can help cover the following:

• Lost profits
• Mortgage or rent
• Utilities
• Taxes
• Payroll
• Advertising
• Relocation fees

Three Types of Business Interruption Insurance

There are three primary types of business interruption insurance:

1. Business interruption: This coverage helps businesses recover lost income after a disaster causes temporary closure and rebuilding. It is important to note that this type of insurance coverage ends as soon as repairs are finished.
2. Extended business interruption: This insurance covers the period between completed repairs and when the business starts generating profits. While some businesses may be able to begin earning income as soon as their doors reopen, other companies are likely to experience a delay in earning profits after a period of shutdown, providing an extra cushion of income during that period. There are time limits in this coverage all of which depend on your policy.
3. Contingent business interruption: This insurance extends other coverage by reimbursing lost profits and extra expenses due to business interruptions at a customer or supplier’s premises.

Business interruption insurance policies usually apply when companies suffer physical damage, which causes them to shut down operations, or their premises are no longer safe for employees. Businesses may be covered if mandated to close by government shutdowns.

Business Interruption Insurance Claims Denial

A business disruption insurance claim can potentially be a significant amount of money. Because of this, insurance companies may look for ways to delay or deny these claims. Your insurer will perform an investigation and may question why your business was shut down. They may offer you a lowball settlement that won’t cover all of your business losses.

If your insurer offered you a low settlement offer, we want you to know that you do not have to accept it. We are here to help you obtain the full recovery your business needs and deserves.

If your business can no longer operate because of a natural disaster or any other catastrophe, like COVID-19, your business interruption insurance should be there to assist you. If your insurance company is denying or delaying your legitimate claim, our Florida Business Interruption Insurance Attorneys at Whittel & Melton are here to help you secure a business income insurance recovery and any other damages as well.

COVID-19 and Business Income Insurance

The coronavirus impact is widening by the hours, so it is essential for business owners to fully understand their policies and the property coverage they have. This is important so that business owners can keep proper records of their losses and notify their insurers swiftly so that they can pursue coverage.

If your business is impacted by coronavirus, we are here working around the clock to review your insurance policies and help you document coronavirus-related business impacts.

Contact Our Florida Business Interruption Insurance Attorneys at Whittel & Melton

If your business interruption insurance has been denied or undervalued, we urge you to contact us as soon as possible. Contact us online or call us 24/7 at 866-608-5529 to have us review your policy and answer all of your questions. We assist companies of all sizes in Tampa, Ocala, The Villages, Gainesville, Clearwater, St. Petersburg, and elsewhere throughout the state of Florida.