What Business Owners Should Know About Business Interruption Insurance Claims

COVID-19 has monumentally shifted how the world does business, putting a great deal of small business owners in financial hardship. While the government has given small businesses and large corporations some monetary relief, the case still stands that business owners are living through a time of great financial turmoil. 

Business interruption insurance might be the only form of survival throughout this time of slowed business. Unfortunately, some insurance providers have taken measures to prevent businesses from getting the assistance they most definitely deserve.  

But there is still hope. The trusted team at Millin & Millin is willing to work tirelessly to fight for your rights during these (financially) trying times, and guide you through all there is to know about business interruption insurance claims. 

Eligibility for Business Interruption Insurance

Business interruption insurance is a crucial topic throughout this pandemic. Many business owners have been forced to close down operations, causing detrimental losses for many businesses across the US. 

There are several aspects that determine whether or not you will be able to obtain financial aid through your business interruption policy. Factors that will affect eligibility may include the state where the policy is located, the type of business covered, and whether the policy-holder is a franchisee or franchisor.  

How Business Interruption Insurance Can Protect You During COVID-19

Business interruption insurance is meant to protect business owners against financial strain in times when going about normal business isn’t possible. Usually, a business interruption insurance policy is established to handle costs including lost revenue, daily expenses, rent bills, and other financial losses.  

Business interruption insurance can offer relief for numerous unprecedented situations. Certain companies have claimed coverage for cybersecurity breaches, while others have received aid upon product recalls.

Unfortunately, lots of insurance providers have found ways to deny valid claims made by policyholders, but you don’t have to accept this as your final determination. The court system is designed to protect policy owners from unjust treatment by insurers. 

Note that before you can get any sort of financial recovery aid, you have to initiate a claim.

The Process for Receiving Recovery Aid Through Your Insurance

The first thing you’ll need to do is verify whether your business qualifies. You can begin this process by seeking a copy of your current business insurance policy and declaration page. Your insurance agent or a lawyer can assist you with this, as the language and wording in your policy can be quite complicated. It’s possible that your policy might include additional contingent coverage for diseases like COVID-19. 

Once that’s settled, you can then file a claim, and keep track of deadlines. Timing matters when handling insurance claims, and whether your policy’s time frame calls for 60, 90, or 180-day claim notice, you’ll have to work within these time frames. 

Calling or emailing your insurance provider is a great place to start with the claims process. 

To present your claim for consideration, you must carefully examine the damage you’ve suffered and document those losses. These include loss of sales, extra expenses such as payroll, rent, materials, and replacement inventory. Make sure to also take note of sales trends and business cycles to concisely demonstrate coronavirus-related losses. 

Other factors you’ll have to look into in this time are periods for restoration, along with your attempts to subsidize losses. By keeping all the necessary documents and remaining in touch with your insurance provider, you may give yourself a fair shot at securing coverage. 

If for whatever reason your claims are still rejected, there are other approaches toward recovery aid. 

If you believe you’re entitled to financial recovery due to COVID-19, the team at Millin & Millin can help. 

Our well-versed insurance attorneys can thoroughly go over your insurance policy, and with that information, help you develop a plan of action for getting you the coverage you deserve. 

Contact us today at (956) 631-5600 for a free case review and for some peace of mind through these financially trying times. 


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