Your business is your baby, and you’ve worked hard to build it into what it is today. All that hard work can disappear in an instant, though, if a fire, hurricane, or thief visits your business. If the damage is severe, your business might need to shutter its doors for weeks or longer.
When disaster strikes, it’s important to know what to do next. Below, a Houston business interruption lawyer explains how to recover if your business is damaged.
Review Your Business Insurance Policy
Take a look at your business insurance policy and read it carefully. Your policy will explain what’s covered and how much the insurer will pay for repairs.
Watch out for policy exclusions. Some policies won’t cover damage caused by flooding or wind, for instance.
Contact Your Insurance Company
Call your insurance as soon as possible after the property damage happens. Your insurance will assign an adjuster who can explain what they need to help you with your claim.
They will also discuss the statute of limitations on filing a claim. In Texas, you generally have two years to make a claim for damage to your business. Insurance claims can take a while to process, so it’s smart to start yours ASAP.
Notify the Police
If the damage to your business was caused by vandalism or theft, report it to the police. You should also call a business interruption lawyer who can explain your options for compensation.
Make an Inventory of Lost Items and Provide Proof of Loss
Do a walkthrough of your business and create a list of items that were damaged or destroyed. Gather receipts for those items and submit them to the insurance company. Your agent will use these receipts to estimate the replacement cost of the items. Note that just because you paid a certain amount for an item, that doesn’t mean the insurer will send you the same amount.
You will also need to submit a signed and sworn proof of loss statement within 60 days of your initial insurance request.
Calculate Lost Income
When your business takes a hit, damaged goods aren’t the only thing you must worry about. If you have to close for repairs, you could lose weeks' worth of income. Fortunately, business income claims can help you recover those losses.
For a successful insurance claim process, you’ll need to show your net income and additional expenses, such as payroll. Your insurer might want to see your records for the past few years. Your business interruption lawyer can help you gather these.
Additionally, submit to the insurance company:
- Expenses related to operating in an alternate location
- Ongoing expenses while recovering from the damage to your business
- Expenses you must pay regardless of operating status, such as utility bills
Meet With the Insurance Adjuster
After making your claim, the insurance company will send an adjuster to tour your property and verify the damage. Keep the damaged items on hand so the adjuster can estimate the replacement cost accurately.
If the building itself has damage, such as broken windows or holes in the roof, it’s okay to make temporary repairs. Save the receipts from these repairs, and keep any damaged parts for the adjuster to look at.
Contact a Business Interruption Lawyer in Houston for Legal Guidance
Is your business in dire straits after grappling with a fire, vandal, or natural disaster? Need guidance on filing your business insurance claim? Reach out to McLaurin Law, PLLC. Our attorneys can review your policy, assist with claim issues, and represent you in court if the insurer denies your claim.
For a consultation with a business interruption lawyer, call us at (713) 364-1895.
