Property, Fire & Business Interruption

When disaster strikes, whether it’s a fire, a natural disaster, or a severe winter storm, businesses face the threat of significant property damage and business interruption. Business interruption insurance is designed to protect your business from the financial losses that can arise from such incidents, ensuring that you can recover quickly and resume operations. If your business suffers property damage or a significant disruption, working with our experienced property, fire, and business interruption attorney in Arlington, VA, can help you navigate the complex process of filing an insurance claim and securing compensation for the business interruption loss.

What is Business Interruption Insurance?

Business interruption insurance is a type of coverage that provides compensation for lost income and operating expenses when a business cannot function normally due to covered events like fire, natural disasters, or other major incidents. This type of insurance ensures that a business doesn’t suffer financially when its operations are halted due to unexpected damage to property.

Having the right business interruption insurance coverage is crucial for protecting your property and securing the financial stability of your business in the event of a disaster.

Common Causes of Business Interruption

Several types of incidents may trigger a business interruption claim. These include:

Fire: Property damage due to fire can shut down operations.

Natural Disasters: Earthquakes, hurricanes, and floods can cause significant disruption.

Winter Storms: These can lead to property damage and halt business operations.

Supplier Issues: If your suppliers cannot deliver materials, it may halt production.

In all these cases, business interruption insurance can help cover losses sustained during the period when your business isn’t functioning properly.

Steps to Take After Property Damage or a Disaster

1.  Assess the Damage: Document all property damage and the impact on your operations. This will be critical for your insurance claim.

2. Notify Your Insurer: Contact your insurance company immediately to start the claims process.

3. Consult an Attorney: Reach out to a business interruption insurance attorney. They can help you file your claim and negotiate with the insurance company.

4. Prepare Your Claim: Your attorney will assist in gathering the necessary documentation to support your business interruption and property loss claims.

5. Evaluate Your Recovery Options: Discuss your insurance coverage and potential recovery options with your attorney to maximize your compensation.

Filing a Business Interruption Insurance Claim

Filing a business interruption insurance claim is a critical step in recovering from a disaster. The process involves submitting a detailed account of your business interruption loss and providing evidence of the property damage caused by the incident. Insurance companies may try to minimize payouts, making it essential to have an attorney by your side who can advocate for your rights.

Working with experienced insurance claim attorneys can help ensure that you receive the compensation you’re entitled to. They can help assess your situation, guide you through the claims process, and handle any disputes that may arise.

Why You Need an Attorney for Your Property and Business Interruption Claim

Our insurance attorney will tell you that First-party property coverage policies generally provide coverage for “direct physical loss of or damage to property.” These policies provide coverage for loss caused by specific risks, including fire, explosions, and natural catastrophes such as hurricanes, floods, and wind. Traditionally, property policies covered losses to tangible property, including buildings, fixtures, inventory, and permanently installed machinery and equipment.

Supplemental coverages include debris removal, increased cost of construction, newly acquired or constructed property, valuable papers and records, electronic data, and pollutant cleanup and removal coverage.

While the property part of the policy indemnifies the insured for the value of the covered property that has been damaged, the business interruption portion of the policy provides coverage for income that is lost when, as a result of the damaged property, the insured’s business is disrupted. Such cover is usually limited to the time period the property is being repaired or replaced. Some policies also include coverage for contingent business income. This cover is triggered when an insured suffers an economic loss either caused by a supplier’s inability to deliver goods to the insured by reason of damage to its property due to an insured peril; or when a customer cannot accept the insured’s products as a result of damage to the customer’s property.

Numerous coverage issues arise under first-party property policies, including whether the insured has an “insurable interest” in the property; whether the damaged property is “property” as defined in the policy; the sue and labor clause; replacement value; coverage for restoration; extended period of indemnity; application of the flood, terrorist, earthquake, and civil disturbance exclusions; trigger of coverage; loss payee and other insurance clauses.

Our law firm encompasses the full spectrum of property insurance coverage issues and disputes. We have prosecuted and defended claims involving major commercial property damage and business interruption losses, product and inventory losses, and disputes relating to the scope of coverage and exclusions and have compiled a library of Virginia, Maryland, and District of Columbia cases on these issues. We also have experience assisting clients in investigating and resolving business income, contingent business income, and extra expense claims.

If you’re facing a property loss or business interruption and need expert guidance, don’t navigate the complexities of insurance claims alone. Contact Schleifman Law today. Our experienced attorneys specialize in helping businesses secure the compensation they deserve for property damage and business interruption losses. Whether you need assistance with filing a claim, understanding your policy, or addressing coverage issues, we are here to help.