Business Interruption Claims can be some of the most complicated claims due to the many factors involved. A policy holder can feel lost during a business interruption claims due to complications such as a material damage proviso. This could cause your whole business interruption claim to be rejected. An indemnity period that isn’t long enough for your business to recover will not help you. This could leave you without funds to get your business back to full operation. This is why it’s very important to read your policies to ensure you have the correct cover in place.
Do I need BI Insurance?
Deciding whether you need business interruption insurance is quite simple. You need to think if your premises where to be inaccessible could your business still function. For example, a digital marketer who only needs internet connection and a computer to work will probably not need business interruption cover. This is because would not be difficult for them to continue working if there were a peril at there premises. However, a company that uses heavy machinery or equipment will most likely need to have business interruption cover. After all, without their machinery or equipment they couldn’t function.
What Does Business Interruption Cover?
Business interruption exists to protect businesses from any property related incident that hinders the company’s ability to operate. So, you should be covered for any type of insured damage. The most common being fires and flood. It also covers bust pipes, impact, storm damage, vandalism and theft.
Business Interruption Insurance Claims And COVID-19
Many business owners across the country are seeking expert advice about business interruption claims as a result of COVID-19. As mentioned, many business interruption policies include a material damage proviso. In most cases, this states that there must be some form of physical damage for business interruption cover to enact.
As COVID-19 is a virus, it causes interruption by staff not being able to work, therefore the business cannot function. However, no physical damage to the premises is caused. Therefore, the material damage proviso protects the insurer from having to pay out.
If you need assistance with your claim during this time I recommend contacting Public Loss Adjusters. They are a independent loss adjusting firm who work exclusively for policy holders ensuring they get everything there entitled to.
Not sure if your business interruption insurance covers you due to Covid-19? Public Loss Adjusters are offering a free insurance policy check to all businesses who are not sure. For more information visit their website: www.publiclossadjusters.com