Florida may be a tropical paradise, but when one least expects it, a hurricane may appear off the coast — with your business directly in its path. While you cannot do much to prevent an event like a hurricane from affecting your business, different types of insurance policies are available to help protect you when you need it most.
One type of coverage available for purchase is called a Business Interruption insurance policy. The loss of operating hours after a disaster or other event outside your control results in a significant loss of revenue, impacting income and the stability of a business to remain in operation.
This type of insurance policy sees that the policyholder benefits when a disaster or governmental order forces a business to shut its doors. But even with business interruption insurance, it is not as easy as one would think to receive the compensation their claim deserves.
That’s where we come in. Pinnacle Claims Services is here to help you reach a satisfying settlement for your business interruption claim.
Our goal is to evaluate your claim, gather the needed evidence of damage, and do whatever possible to ensure you receive the protection for loss of income you pay for.Find out how to get the most out of your policy with our help. Give us a call today at (239) 310-4808, or connect with us online to get started with a review of your losses, your policy, and what your claim could truly be worth.
After a disaster, business owners are responsible for addressing damage to their business location, including coordinating repairs, removing moisture from the air inside their building, and removing damaged fixtures and personal property. While the goal is to make the business space safe and whole, it often comes at a substantial cost.
Forced closures cost business owners money; when they cannot operate as usual, they do not bring customers in, bleeding them of their usual income. The loss of income presents a challenge to pay bills, staff, and contractors.
Business interruption insurance is meant to help business owners recover their net income after an applicable event. However, similar to other insurance claims, insurance companies are known for presenting low-ball offers rather than paying what the claim is worth outright.
Owners are welcome to file claims and tackle any obstacles independently, but their odds of receiving a higher payout are much more likely when they work with a public adjuster. When you hire a public adjuster, you have someone on your side who is an expert in business interruption insurance claims and what their true value is.
As a public adjuster company local to Naples, Pinnacle Claims Services is familiar with the possible events local to Florida, the effects of the situation, and how to move forward with gathering the evidence to provide substantial support for the amount you claim. With our support, you can find comfort in the fact your claim will be as solid as possible and receive the payout your claim deserves.
Business Interruption Insurance — also referred to as a BI insurance policy or Business Income Insurance, is designed to provide coverage for loss of income as an addition to your commercial insurance policy.
This type of protection can keep small businesses in operation when there is substantial money loss due to disastrous events.
Claims covered by this kind of insurance policy may involve an event like:
Business interruption insurance acts as an addition to your typical business owner’s insurance policy. As such, it is not meant to cover things handled by liability and commercial property policies.
In addition, physical damage to the business building needs to be done to qualify for coverage.
These events are not covered by business interruption insurance:
A standard business insurance policy has two components: general liability and commercial property. However, business owners may pay business interruption coverage to protect the business from monetary loss, the type that occurs seperate from liability-inducing and commercial property damage events.
Events like hurricanes create a substantial number of claims, leading some insurers to do what they can to pay the least amount possible. In some cases, even when they do pay, it is not enough to make the business whole, compromising the health of the entire enterprise.
In an event like Hurricane Michael (2019), a business will be inoperable until repairs are made. These events create a lapse in their typical income, impacting their ability to pay workers, bills, and rent. 88% of business owners affected by Hurricane Michael who filed a Business Interruption claim saw additional payments to assist in income losses caused by the natural disaster.
Like commercial property and liability insurance, sections of the insurance policy are added or increased to optimize coverage in a forced business disruption.
Businesses should consider policies that include:
Typically, business interruption payments stop when a business is back in operation after repairs or when access to the site is possible. However, a return to business is not always easy. The restart of business operations may start slowly, especially if there is a change of location or reopening after a natural disaster.
When an extended coverage benefit is added to your policy, it recognizes that opening doors to the public is anything but business as usual. Businesses reopening may see effects on their revenue because of a change of location or make a lower quantity of sales before the event that caused their closure in the first place.
If you are a property owner who rents business space to a tenant, realizing your property is unsuitable for rent creates significant losses in rental income earnings. In addition, if the site previously had a tenant before the event, there is a likelihood that the forced closure will impact their ability to pay rent as per their lease agreement.
With the addition of the loss of use and loss of rent clause, property owners can rest assured that business interruption policies will cover their lost revenues.
Business owners must recognize that not all expenses are covered when buying a business interruption policy. These policies provide income relief rather than reparations for other damages requiring repairs or replacement.
The policy will cover specific expenses that the business can typically manage independently with its normal operations, like payroll, vendor contracts, mortgages or rent, and other similar expenses.
The extra expenses insurance coverage helps protect against reasonable and necessary business costs that may be incurred due to a major disruption of business operations. Typically, candidates elect to pay for this additional coverage, operate seven days a week, and provide unique services essential to services to the community like private hospitals, data centers, and similar.
Business Interruption policies are customized to fit the needs of a specific business. Because of this customization, businesses should elect to revisit the terms of their policies ever so often.
As the nature and success of their business evolve, so does their need for coverage.
These policies step in when commercial and liability coverage cannot compensate the business for financial losses. Generally, business interruption covers losses like:
With a forced shutdown comes massive daily losses for all businesses affected by the event. Businesses need power, water, access, and more to be operable, but when an event like a hurricane passes over a place of operation, it may create substantial structural damage that prohibits safe reopening until things are made right.
If businesses cannot open, they will not generate revenue. A loss of revenue will have trickle-down effects, as it can impact the ability to pay for inventory, salaries, and fundamental expenses like rent.
Realizing you cannot pay your contractors or lenders is a scary thought. But when something out of the business’s control prevents it from operating as it should, it risks losing revenue and, as a result, being unable to make its payments.
Being unable to pay contractors and lenders puts business owners in breach of contract and exposes them to legal liability if they cannot pay.
Like many other coastal cities in Florida, in Naples, you can open businesses and sell products and services to the public during a seemingly perpetual summer. However, with the annual summer weather comes a higher risk that your business will be affected by a hurricane or natural disaster that can shutter it for many days or even weeks on end.
The business interruption portion of your insurance should cover any income losses in place of temporarily shutting down because of a natural disaster.
Seeing your business shut its doors because of disaster is heartbreaking. Insurance companies offer policies to protect you from these events, but when they refuse to own up to the terms of their policies, it is no surprise that you will feel frustrated and concerned about the future of your business.
Hiring a business interruption claims adjuster service is key to working towards getting the money your claim deserves. Pinnacle Claims Services helps business owners seek what they need to bridge the gap during a business interruption.
Insurance policies are there to protect your business in a time of need, and they should cover what your situation is entitled to.Give Pinnacle Claims Services a call to see how we can help you. Reach us at 954-466-2954 or contact us online to get started on seeking more for your claim.
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When disaster strikes, it can be difficult knowing where to turn or who to ask for help. Pinnacle Claim Services’ professional team of Florida public insurance adjusters and support experts are here to assist you throughout every step of your damage claim from emergency services and mitigation through final settlement.
Some of the most common issues people experience with insurance companies after property damage has occurred and a claim has been initiated include: unreasonable delay on the part of the insurance company, inadequate training of the insurance company’s adjusters and adjusters that are “so busy” that your claim gets zero attention and does not progress towards resolution. Additionally, you may not have the appropriate policy with the right type of coverage or limits.
There is no set time period for settling a property damage claim with an insurance company and each claim is different. You could receive a check in a few days or it could be a few weeks. Also, it may take multiple rounds of negotiations and payments for you to be adequately and justly compensated for your claim.
Absolutely not. Some companies do possess better reputations than others and there are some who consistently delay the process unnecessarily. It’s important that you comply with your “duties after the loss” (duty to mitigate etc.) Call us, we can help!
Pinnacle Claim Services will request a copy of your policy, file the proper paperwork for you, put together a comprehensive estimate of damages and negotiate a fair settlement Do not become emotionally burdened. Do not be denied money for repairs you deserve. Rely on Pinnacle Claim Services to work on your behalf, keeping you informed throughout every step of the process to get every penny you deserve from the insurance companies.
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