Business Interruption Insurance Claims
Business interruption insurance is designed to replace the income your business loses when a covered property damage event forces you to close or significantly reduce operations. These claims are among the most complex in the insurance industry, requiring detailed financial analysis to calculate the actual economic loss, careful policy interpretation to identify all applicable coverages, and precise documentation to support the calculation. Insurance companies apply their own methodologies to these calculations and consistently arrive at numbers that underrepresent the actual business impact. We use forensic accounting expertise to calculate your true economic loss and negotiate for every dollar you are owed.
What we fight for in your Business Interruption claim
Insurance company adjusters consistently miss significant portions of covered damage. Here's what we ensure is fully documented and compensated:
- check_circle Lost revenue and net income during the covered closure period
- check_circle Fixed operating expenses during the indemnity period
- check_circle Extra expenses incurred to minimize or shorten the loss period
- check_circle Extended period of indemnity coverage
- check_circle Loss of rents for commercial landlords
- check_circle Civil authority orders affecting access to the property
- check_circle Contingent business interruption from supplier or customer losses
Business interruption calculations are contested heavily by carriers because the dollar amounts are significant and the math is genuinely complex. Your insurer's adjuster applies methodologies that minimize the calculated loss by choosing favorable comparison periods, using selective revenue data, and narrowing the scope of covered expenses. We counter those methodologies with our own financial analysis, supported by your actual business records. We calculate the revenue your business would have earned during the loss period using appropriate historical data, identify every covered expense category in your policy, and negotiate from a position of documented fact. We have handled business interruption claims across retail, hospitality, healthcare, and commercial property sectors.
Our Business Interruption claims process
Policy review
We analyze your BI coverage in detail: the coverage trigger, the indemnity period, the definition of business income in your policy, and all applicable coverage extensions such as extra expense, extended period of indemnity, and contingent business interruption. Understanding the policy precisely drives every subsequent calculation.
Financial analysis
We work with forensic accountants to calculate your actual business income loss during the indemnity period, using your historical financial records, industry benchmarks, and trend data to establish what your business would have earned had the covered event not occurred.
Claim preparation
We prepare a detailed economic loss analysis with full supporting financial documentation: revenue records, expense records, payroll data, and all supporting exhibits. We format the claim to align with your policy's requirements and present it in a way the carrier's adjusters must directly address.
Carrier negotiation
We negotiate directly with the carrier and, if needed, the carrier's forensic accounting team. We defend our calculations with financial data and do not concede ground without documented justification. Most BI disputes come down to competing methodologies, and ours is designed to hold up under scrutiny.
Settlement
We stay on the claim through final settlement, ensuring you recover the income and fixed expense coverage your policy provides for the full applicable indemnity period. Our fee comes from the recovery and fully aligns our interest with yours.
Common questions about Business Interruption claims
No jargon. If yours isn't here, just ask.
call(512) 956-9557My property damage was small but the business interruption loss is large. Can you help? add
Yes. Business interruption losses can far exceed the physical property damage that triggered them. A restaurant that sustains modest kitchen fire damage may be closed for three months during reconstruction, generating a BI loss many times larger than the property claim itself. We handle both the property damage and the BI claim together, ensuring that the full economic impact of the event is recovered. The property and BI claims are separate analyses that each must be documented and negotiated on their own terms.
What is the waiting period for business interruption coverage? add
Most business interruption policies include a waiting period, typically 72 hours from the time of the covered property event, before BI coverage begins paying. Some policies use a different threshold. The waiting period affects when your covered loss period starts. We confirm your specific waiting period, establish the precise start date of your BI loss, and calculate your claim accordingly to make sure the covered period begins and ends where your policy requires.
How do I calculate how much income my business actually lost? add
The calculation starts with your historical business revenue and operating expenses, typically from the prior 12 months, and projects what the business would have earned during the loss period absent the covered event. We use your actual financial records, adjusted for documented growth trends, seasonal patterns, or other factors relevant to your specific business. We then subtract what the business actually earned during the loss period and the variable expenses you did not incur because of the closure.
My business was growing before the loss. How is that reflected in the BI calculation? add
A business that was growing before the loss should not be penalized by using a flat historical average. We document the growth trend using your financial records and present a calculation that reflects the trajectory your business was on before the event. Carriers typically resist growth adjustments, but with proper financial documentation, a trend-adjusted calculation is defensible and we fight for it.
The carrier says my restoration period was shorter than I believe. How do I challenge that? add
The period of restoration is the time reasonably required to repair or replace the damaged property. Carriers sometimes argue this period is shorter than it actually was, which reduces the BI payout. We document the actual timeline of repairs, identify any delays caused by factors beyond your control such as contractor availability or permit processing, and present evidence supporting the full restoration period your business actually experienced.
I operate my business from my home. Does that affect my business interruption coverage? add
Home-based businesses are covered under BI provisions if the policy includes business interruption coverage and the covered property event affects the home. Many homeowner policies exclude business coverage or sublimit it significantly, so the first step is confirming what coverage you have. If you have a home-based business and suffered a property event, contact us for a free policy review to determine what BI coverage is available and how to maximize it.
Business Interruption claim lowballed? Let's fix that.
Get a free claim review from a licensed public adjuster who works only for you. No cost to find out what your claim is really worth.