Many businesses utilize insurance coverage to protect them when a disaster occurs, and when there is no way to earn an income. One possible insurance policy that can be purchased is called “business interruption” coverage. Under this type of coverage, businesses can file a claim to replace income that has been lost as a result of a natural disaster such as a fire, hurricane, or even a national pandemic.
Under this insurance, businesses hope to cover expenses that also keep their business going, including payroll, taxes, and payments for loans. Unfortunately, as many companies need it during difficult times, some insurance providers can make filing a claim much more difficult than it should be.
Factors to Consider
Insurance companies may not be so quick to provide compensation to businesses after a business interruption claim as they’re more focused on their own profits. However, some smaller businesses may not survive if they’re forced to wait too long. As a business owner, if you need to file a business interruption claim, you must recognize a few different factors.
- Causation: It is important to show that your business has been forced to close because of a force out of your control. Whether that is a natural disaster or pandemic, it is important to show that you had no other choice but to close your doors.
- Policy: It is important to review the language of your policy to determine what situations/circumstances permit you to make a valid claim. Some situations, like those involving newer diseases, may not be laid out clearly under your policy terms, but a review of your policy language may be necessary to determine if that is the case.
- Access: What happens if your business is not closed, but there is a situation that has caused your property to be blocked off and you cannot gain access? Your policy must provide the verbiage to show that this is a valid reason under your policy.
It’s often complex to deal with an insurance company acting in bad faith. You need compensation, but your insurance company is not working with you to get you the money you deserve. In this situation, it’s vital to get legal representation to show that you deserve to have your claim approved.
At Berthold Law Firm, PLLC, we’re committed to helping you through a difficult situation. Our Charleston bad faith insurance lawyers are in your corner every step of the way. Your business needs strong representation, and we’ll be there to be your voice to stand up to the insurance company.
Call us at (304) 605-2040 today.