Business Interruption Claims FAQs

When am I entitled to compensation?

Typically, a business will be entitled to compensation only after a period of at least 24 hours. Business interruption claims are time deductibles, rather than dollar amount deductibles. It isn’t uncommon that claims can be counted only once your business interruption exceeds the 48 to 72 hour threshold.

Do I have to provide tax returns upon submitting a business interruption claim?

Without a question, your carrier is going to want to see your tax returns. The tax return documents will have evidence for how much money was made during a specific year and time frame.

What is the fact-finding forensic process?

The fact-finding forensic process is conducted to maximize compensation for your business interruption claim and ensure the highest level of accuracy. Many people don’t realize that the time of the year or season can affect the amount of money you will be entitled to. It’s best to make sure you maintain accurate sales documents from previous years which will help properly project losses that will be sustained during a lengthy business interruption.

What factors affect the outcome of a business interruption claim?

• Documentation: Having the proper documentation of receipts, sales documents, and tax returns all are exceptionally important.
• Deductible: Deductible time will affect when the policy goes into effect. A common time frame is once you pass the 72-hour threshold. Payment will not start until after the time frame has passed as stipulated in your policy.
• Time of Year: Depending on the type of business you have, the amount of compensation that you would be entitled to can be affected by the time of year. Certain businesses have a busy season and a slow season. The amount received in a claim would then be based on the projected income for that time of year, using data from income tax and sales documents.
  

How can a public adjuster help in the claim process for a Business Interruption claim?

Experience, training, and industry knowledge make the services of a public adjuster a valuable resource. From reviewing your policy to checking if you have adequate coverage, to knowing when to file a claim and when not to; public adjusters are trained know the right questions to ask and the best practices for any kind of business. It is important that you reach out to a public adjuster as soon as possible to ensure that the appropriate course of action is being taken to mitigate profit losses on your behalf.