Business Interruption Insurance

Helping Business Owners in Tampa, Ocala, The Villages, Gainesville, Clearwater, and St. Petersburg.

With COVID-19, commonly known as the coronavirus, spreading and many businesses being shut down, the pandemic is causing a loss of income on all fronts. To offset the major disruptions, many small and medium-sized businesses (SMBs) are looking to their business interruption insurance to soften the blow. However, the safety net they thought they were paying into, may not be there.

In the case of COVID-19, insurance coverage will depend on the policy’s terms and conditions as well as the circumstances surrounding the loss a company undergoes. The truth is that successful business disruption coverage claims for viruses are quite uncommon. The laws surrounding pandemics and epidemics connected to human infectious diseases are pretty scarce in the United States due to the fact that these are not regular happenings.

Business interruption insurance is also known as business income insurance, which can help you pay bills, replace lost income, and cover payroll when a covered unplanned occasion forces your business to close temporarily.

Most SMBs carry some type of business interruption insurance, and in the state of Florida these insurance policies are usually set up to cover natural disasters like hurricanes, flooding, or tornadoes. Business interruption insurance is not typically a stand alone policy; instead it is normally part of a larger commercial property insurance policy. Let’s say your business suffers a hurricane, your commercial property insurance would cover the actual physical damages and the business interruption insurance would cover the lost net income.

Business interruption coverage is supposed to protect businesses from economic losses suffered when they have to close because of unforeseen dangers. This coverage is designed to recover the losses of revenue that a company would have earned if there had not been any interruption to business hours.

If your business is forced to shut down, move, or rebuild due to an unplanned disaster, your business interruption insurance can help cover the following:

• Lost profits
• Mortgage or rent
• Utilities
• Taxes
• Payroll
• Advertising
• Relocation fees

There are three primary types of business interruption insurance:

1. Business interruption: This is basic coverage that is designed to reimburse businesses for a loss of income after a tragedy shuts their business down and they must rebuild the business back to a usable condition. It is important to note that this type of insurance coverage ends as soon as repairs are finished.
2. Extended business interruption: This insurance is designed to cover the period of time between completed repairs and when the business begins earning profits again. While some businesses may be able to begin earning income as soon as their doors reopen, other companies are likely to experience a delay in earning profits after a period of shutdown, so this provides an extra cushion of income during that time period. There are time limits in this coverage all of which depend on your policy.
3. Contingent business interruption: This insurance coverage is an extension to other insurance that reimburses lost profits and extra expenses when a business is interrupted at the premises of a customer or supplier.

Business interruption insurance policies usually apply when companies suffer physical damage which causes them to shut down operations or their premises are no longer safe for employees. Businesses may also be covered when they are forced to shut down because of mandatory government shutdowns in their area.

A business disruption insurance claim can potentially be a significant amount of money. Because of this, insurance companies may look for ways to delay or deny these claims. Your insurer will perform an investigation and may question why your business was shut down. They may offer you a lowball settlement that won’t cover all of your business losses. If your business interruption insurance claim was delayed or denied following a disaster that forced your business to shut down, then we urge you to contact our Florida Business Interruption Insurance Attorneys at Whittel & Melton. We handle cases throughout the state of Florida, including Tampa, Ocala, The Villages, Gainesville, Clearwater, and St. Petersburg. We offer completely free business insurance claims consultations and take these cases on a contingency basis, which means you do not pay us a dime unless we win compensation for you.

If you were offered a low settlement offer from your insurer, we want you to know that you do not have to accept this. We are here to help you obtain the full recovery your business needs and deserves.

If your business can no longer operate because of a natural disaster or any other catastrophe, like COVID-19, your business interruption insurance should be there to assist you. If your insurance company is denying or delaying your legitimate claim, our Florida Business Interruption Insurance Attorneys at Whittel & Melton are here to help you secure a business income insurance recovery and any other damages as well.

The coronavirus impact is widening by the hours, so it is essential for business owners to fully understand their policies and the property coverage they have. This is important so that business owners can keep proper records of their losses and notify their insurers swiftly so that they can pursue coverage.

If your business is impacted by coronavirus, we are here working around the clock to review your insurance policies and help you document coronavirus-related business impacts.

If your business interruption insurance has been denied or undervalued, we urge you to contact us as soon as possible. Contact us online or call us 24/7 at 866-608-5529 to have us review your policy and answer all of your questions. We assist companies of all sizes in Tampa, Ocala, The Villages, Gainesville, Clearwater, St. Petersburg, and elsewhere throughout the state of Florida.