Loss of business income is considered a defined period when the normal flow of income is interrupted for any reason. It can range from natural disasters to flood, fire or even repairs being made to the building that houses the business. If your business does not have reserve funds, this period may cripple your company. Your employees may not get paid, bills may be neglected, and the business may collapse. To ensure you are covered in such an emergency, it is important to seek out loss of business income insurance. Such insurance assures policyholders that their loss of income is covered when their business is not operating normally.
However, policyholders and insurance companies often disagree over the time period for the coverage. Most policies state that the business interruption period ends when the physical damage to the property is repaired and returned to normal operation. But realistically, it takes some time for a business to recuperate from the lost time and income. That’s why most policies include an “extended period of liability” so that business owners like you have more time to return to normal working conditions. Though the extension can vary, the standard among policy issuers has become one year or less.
Hopefully, repairs won’t take long and you will be able to return your business to normal operation quickly. Unfortunately, delays are far more common. Sometimes business owners are to blame – such as when an owner faced with a total loss decides not to repair the property damage. Other times, however, the delays are out of the owner’s control. For example, you may be unable to cover the cost of a repair until the insurance company settles your claim. Or the contractor or subcontractor may cause delays. All of these circumstances affect how long you will be without income. We will negotiate with your insurance company to avoid any kind of additional loss and minimize any delays.
The details of each business are different and the calculations can get complex. At Nationland Adjusting Co. we guide each client through the necessary steps to a successful recovery for their loss.
Call us at 1-888-685-6776 and let us help you get started.