Are you wondering if you have a Business Interruption coverage related to the government-mandated shutdown due to COVID-19? Was your BI claim previously denied? It’s important for business owners to know your policy and get an expert 3rd party assessment. It can mean the difference between making it, or closing your doors for good.
What Is Business Interruption Insurance?
Business Interruption Insurance is a type of coverage that is added onto a commercial property insurance policy or included in a commercial package policy. It’s meant to replace lost income in the event the business is halted due to major events. Basically, this type of coverage can help a business continue to pay its bills while the business is closed (or income is down) because of a disaster. Many insurance policies include a BI clause that may provide coverage due to bacteria or virus. This coverage includes business and payroll expenses, covers any associated loan payments acquired, and replaces lost income.
3 Types of Business Interruption Policies
- Business Interruption Coverage compensates the policyholder for the loss of income during the period of interruption resulting from disaster or major storm event.
- Extended Business Interruption Coverage covers income that is lost for a specified period including after the property restoration and before the income returns to the pre-loss level.
- Contingent Business Interruption Coverage includes coverage for loss of income from damage to supplier property or products and services of consumers.
How Do I Know If I Have Business Interruption Coverage?
This can be the tricky part. If included, coverage limits can vary widely, depending on your policy. Each insurance contract is written differently, depending on your carrier. A typical policy covers the business’s losses for up to 12 months while the property is being restored to normal operations, and in some cases, coverage may continue for up to 18 or 24 months. Other policies require you to pay co-insurance as a percentage of expenses, or cover up to a certain dollar limit. Some policies may pay out for 30 to 90 days after the business reopens, while the business gets back to its pre-loss level of sales activity. Some policies have exclusions.
My Insurance Company Denied My Business Interruption Claim Due to COVID…Now What?
If you were previously denied by your insurance company for your BI claim, it’s important to get an expert 3rd party claim assessment. Legislation surrounding this issue is changing daily. There are several nationwide lawsuits in progress, and a few states proposed legislation to try to get coronavirus-related claims covered, even if they were excluded. To date, these states include Louisiana, Massachusetts, Michigan New Jersey, New York, Ohio, Pennsylvania and South Carolina – plus Washington, D.C.
Even if your business is not in one of the states listed above, more and more states are following suit, and you still may have coverage, even if previously denied. Insurance policy rules can be complicated and the details are based on the contract language. Policies that don’t specifically exclude viruses may provide coverage. Even policies with a “virus exclusion” may have coverage options.
Free Policy Reviews!
As Licensed Public Adjusters with over 25 years of experience, the expert team at Mitchell Adjusting International specializes in Business Interruption Claims due to COVID-19. We provide Free Insurance Policy Reviews to businesses nationwide, and determine if any of your losses are covered due to the coronavirus shutdown. If we find that your policy includes this coverage, we take care of the paperwork and confusing legalese to help you process your claim. We assess your financial losses, submit expenses reports and documentation, and advocate for a fair and balanced settlement from your insurance policy. Remember, we work for you, not the insurance company. No recovery? No fee.