Unfortunately, as Texas residents, we’re not immune to the damage that natural disasters such as floods, hurricanes, tornados and even earthquakes can cause. Any of these can unexpectedly leave individuals homeless and upend businesses, requiring them to pick up the pieces and start things over once again.
There are a few more factors that can interrupt a business’s operations. These include running water or electricity losses, vandalism or crime, structural fires, equipment failure, supply chain disruptions, and water damage.
If your business is in ruins after one of these passing weather or geologic phenomena, then you may be wondering where to turn for help. You’re fortunate if you have business interruption insurance. We will detail some of the steps you’ll want to take when your business operations are interrupted.
Steps you can take when a business interruption occurs
One of the first steps you’ll want to take when an interruption to your business occurs is, as you may suspect, to notify your insurance company. Filing a claim sets in motion different processes, including your insurer potentially sending an adjuster out to survey the damage. They might also recommend shoring up the damage and securing the premises.
You should also gather together any documentation showing your typical revenue and costs. You may ultimately submit this information to your insurer when filing an actual loss sustained, also known as a lost earnings claim. Your insurer will take revenues and subtract your ongoing expenses to determine how much they may need to reimburse you.
It’s also critical that you keep an accounting of any extra expenses that you may have incurred due to the business interruption. One example of this type of expense is the rent you must pay at the new office that you temporarily move to after the disruption occurs.
Do you have a valid business interruption claim?
Understanding the difference between property owners’ and business interruption insurance is critical here. If you own your office building, then you’d ultimately file a property coverage claim to pay for repairs to make it habitable again or a replacement cost. You wouldn’t file a business interruption plan in this instance.
You have a lot on your plate if a recent event resulted in an interruption in your business. Dealing with insurers might only add insult to injury, so it may help to know what to expect during this process in advance.