Business Interruption Insurance
It has been awhile, or about 4 weeks, since we first discussed the option of Business Interruption Coverage. At that time, insurance companies were rejecting claims and we focused on more immediate cash flow options like the PPP and EIDL.
Now that the cash flow crisis has been averted, it may be time to look into a claim on your Business Interruption Coverage. Yesterday, I listened to a podcast and read a few articles on making a claim. The key take-away was that even though a settlement may be years away, you need to at least file a claim with the policy claim window in order to be eligible down the road. That window is generally 60 to 90 days so time is ticking.
Here are the recommended submission steps of a claim from the podcast:
Have an attorney that specializes in insurance law review your policy to determine eligibility. You may need to pay the attorney a nominal fee or find an attorney that will work on a contingent fee basis with the goal of a larger class action suit. A quick Google search for ‘Business Interruption claim attorney in your state” will give you a couple choices to start with or you can contact your attorney for a referral.
Determine damages to report for reimbursement. If your policy is deemed eligible, we can work with you to determine the reportable loss. Each policy is different. Some cover lost revenue while others cover cost incurred.
Expect your claim to be denied almost immediately by the insurance company and broker. The survival of their business might be based solely on whether or not they will be required to pay out on these claims.
Work with the attorney to file suit individually or in class action suit against the insurance company.
Depending upon the length/cost of your shutdown and your relationship with your broker/insurance company, you may want to take 30 minutes to investigate your options.
Stay safe, healthy and happy!