Do you have business interruption insurance? Do you need it? How can hiring a public adjuster help with with a business interruption claim? These are good questions to understand now – before you have damages to business property.

What is Business Interruption Insurance?

Business interruption insurance covers income lost when a business owner has to close their doors due to a covered loss. It is an extra layer of insurance that businesses should have in addition to property insurance.

Business interruption insurance is sometimes known as:

  • Business income insurance
  • Extra expenses insurance

Do you have business interruption insurance? Many businesses do. That’s because a strong Business Owner’s Policy (BOP) has this as part of the coverage. This package typically includes liability, property damage and business interruption insurance coverage. A BOP policy is a very comprehensive policy.

However, not all businesses have BOP and not all BOPs have adequate business interruption insurance. Aftermath Adjusters & Consulting, LLC highly recommends that you examine your policy to determine if you have this coverage and if it is sufficient for your business needs.

Do I Need Business Interruption Insurance?

Absolutely! Let’s look at why.

Let’s say that your business incurs damages during a hurricane. Your property insurance will cover the cost of repairing the property. However, it will not pay for lost income. That’s where business interruption insurance comes in.

These policies usually cover three business costs:

  • Operating expenses of the business while it is closed. This includes utilities, rent, mortgage, and even employee wages.
  • Lost profits during the time the business is closed
  • Cost of moving to a temporary location

Other Insurance to Consider

As a business owner, you may also want to consider other endorsements to help replace business income due to a covered loss.

  • Extended Business Interruption Coverage: This helps a business recoup losses after opening and while regaining its previous income.
  • Service Interruption Insurance: This covers income loss to your business if a utility company (gas, water, sewer, or electric) receives damages that cause you to have to close your business. It also covers related substations, plants, and equipment supplier damage if the damage causes utilities to shut down, and thus your business must also close.
  • Contingent Business Interruption Insurance (CBI): Covers income lost because of damage to property owned by others, such as direct suppliers or receivers, as long as the property damage would have been covered under your own policy.

How Can a Public Adjuster Help?

When a claim includes business interruption, there are many things that need to be in place to get the payout you need. A public adjuster can help you:

  • Provide the right business records needed to determine the payout
  • Determine when the loss begins. Most coverage starts immediately. However, some losses, such as those due to a civil authority closure, may not start for 72 hours.
  • Determine when the loss ends. This should be when your business is up and running again.
  • Deal with additional endorsements that help cover lost income with their varied, and often complicated, filing requirements.

If you have a business that has sustained  damage and need help with your claim, give Aftermath Adjusters & Consulting, LLC a call. Additionally, if you need help understanding your business insurance and recommendations on what insurance you need, we are here to help. We work hard to help our customers before and after property damages occur.