Defining Business Interruption Insurance and How to Make a Claim
Say your office in Lexington, OK, experiences a structural disaster. Either an electrical fire or flooding caused by faulty plumbing causes severe damage. Work comes screeching to a halt while a restoration professional toils to return the situation to normal. The resulting revenue loss can be debilitating, but business interruption insurance is designed to alleviate the financial binds caused by these sorts of crises.
What Does Business Interruption Insurance Cover?
In the event you must make such a claim, this type of insurance will reimburse for normal operating expenses, such as:
- Employee wages
- Mortgages and leases
You can also expect fast funding for necessary repairs, such as replacing a broken pipe or temporary boarding of burned-out walls. Note that you are not protected for broken items, utilities or income not already listed within your records. Losses caused by natural flooding, earthquakes or pandemics must be handled through other insurance options.
How Are Business Interruption Claims Processed?
In order for your claim to be approved, you must have a thorough investigation conducted. Your claims adjuster will be able to explain the process, so meet within a few days of the loss. Because insurance companies will closely examine your accident zone, you need to gather as much documentation as possible. If you sustain large water damage, for instance, save every piece of waterlogged equipment, take dated pictures of the inundated area and gather receipts for requisite projects like ripping out soaked carpets or conducting mold inspections.
Your claims adjuster will determine the specific amount you are owed. In certain cases, an outside accountant with investigative skills on top of the relevant financial abilities will be utilized. Consider employing your own to double-check the insurance company specialist’s calculations.
Business interruption insurance protects companies from financial binds when calamities such as flooding, fire or other unforeseen circumstances strike. To protect yours, purchase a fitting policy and then review the filing procedure ahead of an income-halting incident.