• Get your FREE PDF instantly – Essential tips for homeowners!

    Download Now
  • We’re here to help you discover all your options and make decisions with confidence.

Schedule A Consultation
(713) 461-6500
(713) 461-6500
March 16, 2021
Jason McLaurin

Will Business Interruption Insurance Cover Winter Storm Losses?

Schedule A Consultation
Read Full Post

Over the past several months, many business owners have learned that business interruption coverage is not always as helpful as they might wish. Specifically, there have been a lot of legal maneuverings related to business interruption claims in the wake of COVID-19. Often, these cases have been resolved unfavorably for business owners.

The good news is that, in the case of Texas’ winter storms, many business owners will find their business interruption coverage a bit more helpful. If you have had to shut down your normal operations as a result of the inclement weather or damage to your premises, it is worth taking a closer look at your BI policy, and perhaps even speaking with a Texas insurance attorney.

What Is Business Interruption Insurance?

First, a quick reminder as to what BI coverage actually entails.

Essentially, a business interruption policy will help supplement your company’s income should you find yourself unable to operate as normal. Naturally, there are certain types of “interruptions” that are included in any given policy, and it is important to review your specific coverage before filing a claim.

What Is and Isn’t Covered Under Business Interruption Insurance?

Generally speaking, most business interruption policies will cover your business if you have to close your doors or suspend normal activities due to physical damage to the building. For example, if you have to close your retail store to make repairs following a tree falling through the roof, or a frozen pipe bursting, that will likely be covered by your business interruption policy. This will come as welcome news to many Texas business owners who are dealing with the aftermath of frozen pipes following the severe winter storms.

A more complicated issue is power outage. Some business interruption policies do not cover off-site utility outages. Although business owners may have separate riders or provisions to offer extra protection.

Also note that, even if you do have interruption related coverage, this coverage often has a time clause. For example, your coverage may not kick in unless you are without power for 72 hours.

Looking Closely at Your Coverage

The bottom line? Following the winter storms, some business owners may be able to make a claim based on their business interruption coverage, potentially recouping some of the losses they endured during the inclement weather.

Not all business owners will be eligible to make a claim, so it is important to review the specific language of your policy. Most often, business owners who are eligible to make a claim will be those who fall into one of these two categories:

  1. Those who experienced physical damage to their property, such as ruptured pipes.
  2. Those who have additional endorsements for off-site power outages, and who experienced a sustained interruption to their utilities.

If you have any specific questions about your business interruption coverage or wish for one of our attorneys to take a closer look at the language of your policy, we’re here for you. Reach out to the team at McLaurin Law any time.

Copyright © 2023. McLaurin Law, PLLC. All Rights Reserved.
The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.
McLaurin Law, PLLC

4544 Post Oak Place Dr
Suite 350 Houston, TX 77027

(713) 461-6500http://mdlawtex.wpenginepowered.com/

Related Services

Hours of Operation

Office Hours: 8:30 AM - 5:00 PM

Available by Phone: 24/7

Whether you are recovering from a personal injury or attempting to recover compensation with an insurance coverage claim or appeal, our legal team will vigorously advocate on your behalf.
Personal Injury and Insurance Law Attorneys in Houston, TX
© Copyrights 2024. McLaurin Law PLLC. All Rights Reserved.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship