Business interruption claims can be complicated and stressful for business owners, especially when dealing with the aftermath of a natural disaster or pandemic. Unfortunately, many business owners overlook crucial information and documentation that is required to successfully file a claim.
Here are a few things that are commonly missed in business interruption claims:
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Lack of adequate insurance coverage:
Before a crisis occurs, it is important to review your insurance policy and make sure you have the right coverage in place. Many business owners have coverage for physical damage but overlook coverage for business interruption.
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Timely notification:
Filing a claim as soon as possible is crucial in order to receive maximum benefits. Many policyholders are so focused on recovery and rebuilding that they forget to file the claim in a timely manner.
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Proper documentation:
It is essential to keep detailed records of all expenses, losses and revenues during the interruption period. This documentation is necessary for the insurer to accurately assess the extent of the loss.
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Understanding of the policy:
It is important to understand the terms and conditions of the policy, as well as the limitations and exclusions. For example, many policies have a waiting period before benefits begin, or a maximum payout limit.
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Exclusions:
There may be specific exclusions in your policy that can limit the amount of coverage available. For example, some policies exclude coverage for losses due to war, terrorism or pandemics.
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Proving the cause of the interruption:
In order to receive benefits, it must be proven that the interruption was directly caused by the event specified in the policy. It is important to have evidence to support the claim, such as weather reports or government mandates.
