Recent storms in the Houston area have caused significant power outages, leaving many businesses unable to operate. As a result, business owners seek guidance on submitting a business interruption claim. Understanding your policy and filing process nuances is crucial if you're in this situation.
Key Steps for Filing a Business Interruption Claim
- Understand Your Policy Terms
Business interruption insurance often includes a waiting period before coverage begins, typically 24 to 72 hours of downtime. Check your policy to determine when coverage applies. For example, if your policy has a 72-hour provision, filing a claim for only 48 hours of downtime would be denied. Reviewing this early can save time and frustration. - Identify the Correct Policy
Business interruption coverage is usually part of a property insurance policy or the property section of a business owner's policy. To avoid unnecessary delays, ensuring you're filing under the appropriate policy is critical. - Provide Detailed Financial Documentation
Insurance carriers often require specific financial data to process a claim. This can include prior profits, projected future profits, and other financial records. In many cases, business owners may need to work with accountants or forensic accountants to ensure accurate data submission. - Be Prepared for Challenges
Insurance carriers frequently scrutinize business interruption claims, particularly regarding how profits are valued. Submitting incomplete or incorrect financial data can result in disputes or denials.
Why Early Legal Advice Matters
Getting professional guidance early in the claims process can help avoid mistakes that insurers might exploit. Having an attorney involved from the start ensures your claim is documented correctly and maximized, giving you a more substantial chance of receiving fair compensation.
Schedule a Consultation Today
If recent storms have affected your business, don't wait to seek help. Visit our website at mdlawtex.com/contact-us or call us at 713-766-5621 to schedule a consultation. With experienced guidance, you can confidently navigate the process and secure the support your business needs.
