Business Interruption and Extra Expense
Whether a business is brand new or has been operating in the community for years, Business Interruption and Extra Expense insurance coverage is something all businesses should have built into their budgets. It is specifically designed to protect businesses against losses sustained as a result of direct physical loss, damage, or destruction to insured property that was caused by a covered event.
Insurance companies typically raise certain issues with Business Interruption and Extra Expense insurance claims like (i) whether the event causing the business to shut down is covered under the policy, (ii) how much the policyholder is entitled to receive if they cover the claim, and (iii) the length of time for which the policyholder is entitled to receive insurance benefits.
Business Interruption and Extra Expense insurance generally covers:
- The Net Income you normally would make if your business was open
- Payroll for your employees
- Relocation costs if you have to move to a new or temporary location
- Costs incurred to avoid or minimize the suspension of the business, including the costs to equip and operate the replacement or temporary locations
- Training costs for employees to learn how to use new machinery or equipment
Actual Loss Must Be Sustained
Most policies say that the insurance company will pay only if the policyholder suffers an actual business interruption leading to business income loss. Moreover, the loss is subject to the policy limit that applies to the specific location where the loss occurs and the type of event that leads to the loss.
Period of Restoration
Most policies also say that the insurance company will only pay for the loss of business income during the “period of restoration,” which is typically defined as the length of time required to rebuild, repair, or replace damaged or destroyed property. This period generally begins when the physical loss or damage occurs, or shortly thereafter; and it ends when the property is repaired or should be repaired, with diligent efforts.
Contact our Business Interruption and Extra Expense Attorneys
Business Interruption and Extra Expense claims are often the subject of considerable litigation. In addition to all the various legal issues associated with them, multiple experienced forensic experts are required in order to prove the true scope and extent of your business loss. Kubiak Law Group understands the law, your insurance policy language, and the rules and regulations as they pertain to Business Interruption and Extra Expense claims. We have the experience, knowledge, and resources required to fight insurance companies to protect your rights.
We offer free consultations, the same-day return of calls and emails, and 24/7/365 availability. Contact us today to schedule a free, no-obligation consultation and learn how we can help with your insurance claim.