Business Interruption Disputes

The majority of commercial insurance policies provide coverage for lost revenues due to catastrophe, commonly referred to as Business Interruption coverage. For example, should a tree fall onto an office’s roof requiring a shutdown or a natural disaster destroy equipment essential to a business’s operations, the business could rightfully make a claim of business income loss. This coverage becomes an invaluable lifeline for business owners who have experienced a physical loss and, as a result, lost their ability to earn business income. A Business Interruption claim due to physical loss, by definition indicates that your business is facing unprecedented challenges. Unfortunately, those challenges are often needlessly complicated by a complex claim process and insurers’ dogged defense of their own financial interests. Despite diligently reviewing and selecting coverages to protect your business, and despite faithfully meeting your obligation by paying premiums every month, your insurer fails to evaluate your claim fairly or worse, issues a prompt denial and ignores any further effort to communicate. You need a Florida attorney versed in business interruption disputes.

Complicating matters further, “physical loss” is not clearly defined under Florida law. This means the validity and valuation of your claim may lie in subjective interpretations influenced by on-staff forensic accountants and/or other outside experts, selected and paid by your insurer. You need an attorney for business interruption disputes that will fight for the benefits to which you are entitled. Your legal team from Rosenberg Law, P.A. will relieve you of the time, labor and stress of investigating, presenting and negotiating your business income loss claim. We will move quickly to investigate and assess your claim, ensure compliance with all deadlines and reporting requirements, and negotiate fair valuation of your business interruption loss of income. The attorneys of Rosenberg Law, P.A. will fight on your behalf, enabling you to focus on restoring your business operations and otherwise recovering from disaster.

What is Business Interruption Insurance?

Business interruption coverage or business income coverage is intended to compensate you for revenue lost as the result of a catastrophe or other event that forces closure of your business. Business interruption coverage typically includes protections for:

Operational income lost as a result of closure
Rental income lost when a property could not be occupied
Wages paid to retain employees during closure
Costs of relocation should your business require temporary facilities, including rent
Fixed costs such as taxes, insurance premiums, mortgages, and licensing fees
Costs related to lost revenue and lost profits, which are documented via tax returns, profit and loss statements, sales records, and regular accounting records.
Costs related to technology replacement or restoration—hardware and software required for business operations.
Costs to retrain workers in using equipment and/or technology differing from pre-loss

Does Your Commercial Insurance Policy Cover Business Income Loss?

Your current business insurance policy likely includes business interruption coverage. That being said, not all policies will cover the same losses, and many policies have various exclusions regarding which losses are covered, and when those losses are covered. A comprehensive review of your existing business income loss coverage by the professionals at Rosenberg Law, P.A. can help assure the protection you need is in place when a disaster occurs.

Did you know?

When you haves suffered a sustained business income interruption, you may be entitled to interim payments or advances that will cover relocation costs and other essentials that cannot be delayed without further impacting business income.

What are the Various Types of Income Loss Claims?

The veracity and appraisal of your claim will be defined by the specifics of your loss. Business interruption claims may include:

Actual losses sustained resulting from a peril that is not excluded from the policy for direct physical loss or damage. The insurance will only pay if there is an interruption of business, leading to loss of business income.
Your policy may include an added endorsement that provides “extra expense” which covers additional costs outside normal operating expenses required to restore your income.
When a suspension of your business operations due to a physical loss causes a reduction in your income, you may be entitled to compensation for lost income as well as compensation for normal operating expenses, such as payroll and other business expenses.
Leader or Attraction Property coverage provides coverage to property you may not own or operate, but which is located within a stated distance to your property, and that attracts business to your property.
You may also have a service interruption clause in your policy which provides business income coverage that arises from damage, destruction, or direct physical loss related to a utility (electricity, gas, telephone, sewer, water, transmission lines, substations, and equipment).
CBI or Contingent Business Interruption covers any business income loss that results from damage, destruction or physical loss of property owned by others. This generally covers direct suppliers to your business. CBI may extend coverage for indirect or second-tier suppliers, although the policy may require those suppliers to be specifically identified.
Military Authority or Civil Authority Business Interruption coverage provides compensation when you cannot do business as a result of an order by civil authority as a direct result of physical damage. Click here for more information regarding business interruption resulting from the Covid-19 pandemic and claims of loss of income.

How Can Rosenberg Law, P.A. Help You with Florida Business Interruption Disputes?

If your business has suffered a revenue loss as the result of business interruption, contact Rosenberg Law, P.A. at our Plantation, Florida or Sarasota, Florida offices. It is imperative that you consult the experienced business interruption attorneys at Rosenberg Law, P.A. to effectively advise you and to fight for your rights. We will help to make sure that an insurance company does not take advantage of you or underpay your business income loss claim. Contact Rosenberg Law, P.A. today for a comprehensive evaluation of your business interruption coverage or your pending business interruption claim.