Business interruption insurance claims centres around the income loss of business based on varying factors. As the novel Coronavirus COVID-19 pandemic ravages the world, many businesses are forced to halt operations, which has led to significant financial losses. Some employers have also laid off a large number of employees, while others currently work remotely.
“Do my business interruption insurance policy cover my recorded losses resulting from this pandemic?” you might ask. You are about to find out the answer and more in this guide. However, for some new to the term “Business Interruption Insurance”, let us find out what it means right away.
Definition Of Business Interruption Insurance
Business interruption insurance is a type of insurance coverage that financially supports business owners with income losses resulting from a disaster. This coverage is a segment of a broader insurance policy, which means that policyholders-to-be can’t purchase it solely.
Business interruption insurance is either a part of a property/casualty policy or a comprehensive package policy. It is usually added to the latter as an add-on or rider.
Ways Business Interruption Insurance Can Reimburse Business Owners
Business interruption claims in Indiana or reimbursements work well for business owners with the following issues:
- Lost Revenue for business owners who can no longer conduct business transactions with customers or end-users.
- Rent or lease payments for payments on leased business equipment or property.
- Relocation Costs for businesses that have to relocate due to a disaster and need moving costs and rent.
- Employee Wages to maintain consistent payment of salaries to employees as the business shuts down. Insurance policies cover payments up to a year for each employee, depending on the employer’s plan.
- Tax Coverage for businesses with outstanding property tax and other forms of taxes.
It is important to note that this insurance policy does not cover repairs on damaged business properties; they are covered by the property coverage policy.
How About Businesses Affected By COVID-19?
This is most likely a common question in the minds of many affected business owners with business interruption insurance policies. For now, it is not yet certain if this policy covers losses incurred from the COVID-19 pandemic. To be sure about specific coverages, find out what areas your policy covers, especially those relating to pandemics, epidemics, or infectious diseases.
You can as well consult a business interruption claim lawyer to get more clarification or claim such insurance policy. COVID-19-related losses are hard to claim as they are not physically damaging to business properties as natural disasters or fires.
The only way a business owner can claim such insurance is if he or she can convince the court that the damages stemming from COVID-19 are physically-related. In some jurisdictions, odours and vapours are termed physical damage.
How To File A Claim
Owners can file business interruption insurance claims with their insurance companies. They have to tender information on the income generated before the disaster and currently. It is vital to keep tabs on all your financial activities; this will help you present substantial proof that your business was affected as a result of the Coronavirus.
What can I tender as proof? Documents that are tenable may include a copy of the governor’s order or one that shows your business as being part of those forced to shut down. In conclusion, it is best to hire an insurance attorney that will walk you through available options.