Long Nguyen | author
ICHQ | Site Author
Business interruption policies are designed to provide business owners like you with just compensation in the event a covered event thwarts the smooth operation of their businesses.
Hurricanes are infamous for shutting down businesses – in addition to a host of other devastating effects – which makes better understanding your business interruption coverage paramount.
If you have a business interruption claim that the insurance company may not be addressing fairly, seek the professional legal counsel of an experienced New Orleans business interruption attorney today.
Business Interruption Coverage
A hurricane can shut your business down with a mighty blow, and the losses you experience may be more considerable than you even realize. Business interruption insurance doesn’t cover the physical damage you sustain but, instead, covers losses like the following:
- Lost income and profits
- Fixed costs, such as your utilities and payroll expenses
- Ongoing tax requirements
- Reasonable expenses related to running the business while the premises are being repaired
- Lost rents
- Small business loan payments
- The expense of relocating temporarily
It’s important to note that business interruption policies are only tripped in those situations when one of the following applies:
- Your business must suspend its operations due to physical damage to the premises.
- There is physical damage to another property that completely or partially precludes employees or customers from entering your business, and the damage in question was caused by a covered loss.
- The government shuts down an area as a result of property damage covered by the policy addressing your employee’s or your customers’ inability to enter your business.
Business Interruption Claims for Hurricanes
Most business interruption policies in Louisiana require a waiting period – or a period of restoration – that refers to the number of hours you’ll need to wait prior to your business interruption coverage kicking in. This is usually a period of from 48 to 72 hours, but it cannot exceed 30 days – except under specific policy endorsements.
Generally, business interruption loss is calculated in terms of the total amount of time the business is shut down, the quantity of goods that are routinely produced, and the total value of all production units.
The Insurance Company and Bad Faith Practices
Insurance companies recognize the financial gravity when businesses are shut down by the powerful effects of a hurricane, and unfortunately, some are not above exploiting their claimants’ vulnerability. Common bad faith practices that some insurance companies stoop to in their efforts to bolster profits include:
- Denying valid claims that should be processed
- Undercompensating valid claims
- Delaying the claims process to the point that it harms claimants
The most important point to remember is that you have rights, and a dedicated business interruption attorney can help you protect them.
Reach Out to an Experienced New Orleans Business Interruption Attorney Today
The formidable New Orleans business interruption attorneys at Insurance Claim HQ are well prepared and well positioned to skillfully advocate for your claim’s best possible resolution – in support of your rights and rightful compensation. Learn more by contacting us today.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.