The COVID-19 outbreak wreaked major havoc on all industries throughout the world. From closing down restaurants to disrupting supply chains and sinking the stock market, COVID-19 made no exceptions on who or what it affected.
To help cover major financial losses, businesses from coast to coast in the United States made business interruption claims with their insurers, only to discover that their claims were denied. But while COVID-19 has caused some confusion over which perils are covered, carrying business interruption insurance is more important now than ever before.
Read on to learn more about how and when to file a business interruption claim.
When to File a Business Interruption Claim
Business interruption coverage typically covers short-term financial loss from interruption to a business’ operations due to damage to the company’s premises or equipment. Some scenarios in which business interruption claims are filed include theft, fire, wind, falling objects, or lightning. For instance, if a tornado or flood hits and a business’ equipment is damaged in the process, the business owner can file a business interruption claim.
Business interruption coverage is extended to include prevention of access to the premises and sometimes includes loss caused by interruption to supply of goods and services, which creates a potential for COVID-related claims to be paid out.
How to File a Business Interruption Claim
When filing a claim, show the income the business was generating both before and after the loss. Keep detailed records of business activity and the added expenses of keeping your business running in a temporary setting during the interruption period and the expenses that continue during the time the company is shut down.
When an incident occurs, contact your insurance agent immediately to get expedited action. Read your insurance policy so that you know what your responsibilities as an owner are and take steps to protect your property from any further damage by making temporary repairs.
While some companies might be experiencing some trouble with business interruption coverage during these unprecedented times, having this insurance only helps to protect from the unexpected. Especially as the economy attempts to recover, business interruption insurance provides peace of mind for business owners.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (877) 787-5258 to speak with one of our professionals.