Running a business can be challenging, especially when unexpected things happen.

Disasters like fires, natural events, or even a pandemic can cause damage to your property and make it hard to earn money. That’s why having the right insurance is important.

One type of insurance that can help you protect your business and income is called Business Interruption Insurance. In this article, we will explain why this insurance is important and how it can help you get the money you need when your business is interrupted.

What is Business Interruption Insurance?

Business Interruption Insurance is a special kind of insurance that helps you when your business can’t operate normally. It is an extra part of your regular insurance for your business property. This insurance covers the money you lose when something unexpected happens and stops your business from running.

What Does Business Interruption Insurance Cover?

Business Interruption Insurance covers different events that can disrupt your business, such as:

  1. Damage to Property: This includes things like natural disasters (like hurricanes or floods), fires, or when someone damages your property on purpose.
  2. Equipment Problems: If important equipment or machines break down and stop your business, this insurance can help you with the money you lose.
  3. Problems with Suppliers: Sometimes, if a company you work with can’t deliver the things you need, this insurance can pay you for the money you lose because of it.
  4. Orders from the Government: In some cases, the government may make rules that stop you from going to your business. If this happens because of something that is covered by your insurance, you can get money to make up for the lost income.

How is the Money Calculated?

To decide how much money to give you, the insurance company looks at a few things, like:

  1. The Money You Would Have Made: This is the money you would have earned if the unexpected event hadn’t happened.
  2. Costs That Keep Going: Even if your business is not running, you still have to pay for things like rent, utilities, salaries, and loans.
  3. Extra Costs: Sometimes, you have to spend extra money to fix things quickly or rent temporary spaces. The insurance can help with these extra costs.
  4. How Long It Takes: The time it takes to get your business back to normal is also considered. This includes fixing things, buying new equipment, and making changes.

Proving Your Losses

To show that you deserve the money from the insurance company, you will need to provide some documents, like:

  1. Financial Papers: These are papers that show how much money your business was making before the unexpected event happened. This includes things like income statements, balance sheets, and tax returns.
  2. Business Records: You will need to show documents that prove how much money you were making and spending during the time your business was interrupted. This includes things like sales records, orders, invoices, and receipts.
  3. Expert Help: In some cases, you may need to get help from professionals who know a lot about money and businesses. They can help you understand how much money you lost and prove it to the insurance company.

Getting Help with Your Claim

Making an insurance claim for business interruption can be complicated. The insurance policies have lots of difficult words and rules that can be hard to understand.

That’s why it’s a good idea to work with a lawyer who knows about property damage and can help you through the process. The attorneys at Flores and Pelaez-Prada will make sure you know your rights and help you get the money you need from the insurance company.

Business Interruption Insurance is an important type of insurance for business owners. It helps protect your income when unexpected events make it hard to run your business. Understanding the terms of the policy, calculating your losses accurately, and providing the right documents, can increase your chances of getting the money you need.

Give our law firm a call for a free consultation if you’re dealing with a property damage claim including your Business Interruption at 855-786-7674.