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Business Interruption Insurance Claim

The public adjusters exclusively for commercial and multi-family policyholders.
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BUSINESS INTERRUPTION LOSS

Trust ICRS public adjusters to settle your business interruption insurance claim

When a business interruption has devastated your life, calling a public adjuster about filing a business interruption claim can help you put the pieces back together.

Public Adjuster for Business Interruption

Business Interruption Insurance Claims

How to File a Loss of Business Income Insurance Claim?

Business income insurance policies cover businesses that lose income and incur expenses due to a covered loss, typically associated with physical damage or civil authority and dependent on your specific policy language.

1. Read the full policy for coverage, exclusions, deductible, your rights, terms, and conditions.

2. Put your insurer on notice of loss in writing if you anticipate a loss of income with an explanation of why you believe your loss is covered.

3. Submit your mitigation expenses and financial records evidencing your business’s actual and/or anticipated damages that exceed your deductible.

If your insurer denies or underpays your claim, they are required to provide you with a reasonable explanation.

Business interruption general information

Attention business owners:  Has a fire or storm disrupted your business?

When commercial and multifamily property owners suffer a covered fire, flood, wind or another disaster that damages their buildings, we process both their physical property and the loss of business income.  We’re experienced in interpreting policy language, documenting business income losses and most importantly, getting claims settled fairly

4 Things you need to understand regarding your business insurance policy

We encourage you to diligently understand the claims handling process you choose to follow, as it may make a significant difference between getting settled in months versus years.  In order to determine if you have insurance coverage for business interruption, you need to take certain actions and understand 4 truths so you can make an educated business decision in order to determine the best course of action to protect your business, your rights, and revenue.

1. Read your full policy language regarding business interruption. Your insurance may have provisions and exclusions that could trigger coverage depending on what your policy says, doesn’t say, your circumstances and industry.

2. Know that as public adjusters, our firm has years of experience in successfully negotiating millions of dollars in business interruption insurance claims.

3. Get a complimentary review and consultation of your business insurance policy coverage as it relates to civil authority orders and viruses.

4. Ask your legal advisor if a licensed public insurance adjuster can legally represent your interest in handling your business insurance claim. 

When putting together the BI claim it will be important to consider:


Policy


The BI insurance policy language is the underlying driver in claim acceptance.  It sets out what is covered or excluded and the definitions to be applied in your situation.

 

Damage to the property


The BI insurance policy normally requires there to be damage to the business premises or other property.

 

Extensions


Your BI policy (or schedule) may include extensions or items that are covered in addition to loss arising from damage to the premises.  Extensions may include:

  • Prevention of access to the premises (e.g. civil authority orders);
  • Interruption to the supply of goods and services (e.g. loss of electricity and water);
  • Interruption caused by damage to the premises at suppliers and customers. (Supply chain interruption)
 

Exclusions


The BI policy will include a list of exclusions or items that are not covered by the BI policy.  Some BI policies specifically exclude the loss arising from damage caused by natural disasters including earthquakes and viruses.

 

Financial loss


The financial loss suffered will normally need to be as a result of damage to the business premises (or covered by extension and not excluded).

 

Presentation


The presentation of your claim is critical.  The insurer processing your claim is likely to be dealing with thousands of claims and have limited knowledge of your business.  It is important that you provide your insurer with all of the relevant background and financial information needed to process the claim. We recommend you provide your insurer with the following:

a)    A brief cover letter providing:

  • An overview of your business including the location(s) of your business;
  • Details of the damaged premises, details of prevention of access to the premises or details of interrupted supplies/utilities;
  • Current operations (e.g. did a tenant need to transfer, are you operating from new place of business or are you looking for new place of business, how long, how much is it costing you etc);
  • Impact on trading (i.e. did your business completely shut down or were you able to partially trade);
  • A timeline of key events;

b)    Your method of calculation for your loss;
c)    Supporting documentation for your claim calculation including evidence of a payments for any incurred costs and contracts entered into with the expectation of being incurred.

How are Business Interruption insurance claims calculated?

The intention of loss of business income or business interruption (B.I.) insurance is to put you back into the same financial position you would have had the damage and ensuing interruption not occurred. Typically, B.I. insurance covers four key aspects:

 

+ Loss of gross profit / rent

+ Additional expenses incurred (e.g. hire mitigation company)

– Savings in expenses (non recurring)

Reasonable claim preparation costs (e.g. accountant’s costs)

The approach to calculating your claim will depend on your BI policy language, your business and the records available. An example business interruption claim calculation is shown below:

Example BI calculation$
+ Expected sales (i.e. if the premises had not suffered damage)1,000,000
– Actual sales(200,000)
Reduction in sales800,000
– Cost of sales (say 30%)(240,000)

 

= Reduction in gross profit

 

560,000

+ Additional expenses (e.g. rental of temporary premises)100,000
–  Cost savings (e.g. lease of damaged premises)(200,000)
+ Claim preparation costs (e.g. accountant’s costs)50,000

 

= Total BI Claim

 

$510,000

 

The calculation is conceptually straight forward.  However, applying it can quickly become challenging when faced with the realities of:

  • Incomplete records;
  • Seasonality and trends;
  • Determining the level of sales that would have occurred had the premises not been damaged given the change in demand following the occurrence;
  • Determining the level of business successfully transferred to other properties.
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Risk-Free Loss Recovery Offer

Get a complimentary consultation on your business interruption insurance claim.  We are business interruption claim adjusters who work for policyholders, not the insurance company. If you choose to hire us, we work on contingency. No recovery, no fee.  Our business interruption insurance claim process is proven and streamlined.  We also value your privacy. We do not sell, trade, or rent your personal information to others.

Need immediate business interruption insurance claim help?

TESTIMONIALS

What Client Says About ICRS

It pays to know ICRS – “747% Higher Payments with a Public Adjuster for Claims related to a 2005 Hurricane”

ICRS provided superior support and documentation, which was invaluable in proving the extent of roof damage that was sustained from a major hail storm that struck the Chico Community. A great professional service that advocates for their clients.
Mike J.
Texas
Insurance Claim Recovery Support settled my claim for top dollar in just 40 days after a hail claim on my apartment complex was flat out denied. ICRS completely reversed the carrier’s position!
Richard N.
Texas
Our company suffered severe hail and wind damage to two large apartment complexes in San Antonio, TX. We would have lost out on our insurance claim without the help of ICRS.
Ted J.
Texas
FAQs

Frequently Asked Questions

A public adjuster is a licensed insurance professional who specializes in helping policyholders navigate the complex process of filing and negotiating property damage insurance claims. Public adjusters represent the policyholder’s interests, not the insurance company’s, and work to ensure that the policyholder receives a fair and prompt settlement for their claim. Their duties include evaluating the damage, reviewing the insurance policy, preparing a detailed claim, and negotiating with the insurance company on behalf of the policyholder.
You should consider hiring a public adjuster if you are facing a large or complex property damage insurance claim, such as those resulting from fire, water, or storm damage. Public adjusters are particularly helpful when the scope of the damages is unclear, the insurance company’s offer seems insufficient, or there are disputes about the cause or extent of the damage. Hiring a public adjuster early in the claims process can help ensure that your claim is properly documented, and your interests are well-represented throughout the process.
Public adjusters typically work on a contingency fee basis, meaning they only get paid if they successfully recover a settlement for you. Their fee is usually a percentage of the total settlement amount, which is agreed upon in advance. This percentage can vary depending on the complexity of the claim and the location, but it usually ranges from 5% to 15% of the total settlement.
Insurance company adjusters are employed by the insurance company and work to protect the company’s interests. Their primary goal is to evaluate the claim and determine the amount the insurance company is liable to pay, which may not always align with the policyholder’s best interests. On the other hand, public adjusters are independent professionals who work exclusively on behalf of the policyholder. Their primary goal is to ensure that the policyholder receives a fair and prompt settlement for their claim.
While insurance agents and brokers can provide valuable guidance and assistance in filing an insurance claim, they may not have the specialized expertise required to manage complex property damage claims. Public adjusters have extensive experience in assessing damages, interpreting insurance policies, and negotiating with insurance companies, which makes them better equipped to handle large or complicated claims. Hiring a public adjuster can be especially beneficial if you are not satisfied with the settlement offer from your insurance company or if you are facing disputes regarding the cause or extent of the damage.
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