Business Interruption Insurance Claims
At the outset of your claim, it is essential that work is focused on establishing liability acceptance from your insurance company. A delay in getting liability accepted on a commercial loss can have dire consequences for any business’ future as cash flow can be impacted for several months.
With Brendan Boyle on your side, your specialist commercial Loss Assessor will ensure your claim is processed as quickly as possible, with everything in place ready for the moment liability is accepted.
Once liability has been accepted, Brendan will not only be working on your insurance claims for buildings, stock, machinery etc., he will also be preparing your claim for business interruption…
What is business interruption insurance?
Business interruption is a type of insurance that is designed to protect businesses against the financial loss suffered as the result of a property claim.
Unlike buildings insurance, which only covers physical damage, business interruption exists to cover the income a business would have received had the incident not happened. For businesses affected by fires, floods and other similar incidents, business interruption insurance can mean the difference between ensuring a long-term future and going under.
Who needs business interruption insurance?
There are a number of factors that determine whether or not a business requires business interruption insurance, but above all else it comes down to whether or not substantial damage inflicted on the business’ property or physical assets would affect its ability to trade for any sustained period of time.
For example, in the event of a flood, a sole trader who relies only on a laptop and an internet connection to work would have little trouble finding a replacement machine and a temporary premises from which to operate. However, at the other end of a scale, a large business that holds a lot of stock or equipment would be more exposed should its assets be damaged or destroyed.
Because business interruption insurance is not a legal requirement, the onus is on the business owner to assess the risks, and consider whether a large scale disaster would affect its ability to trade. If the answer is “no”, then it is unlikely a business interruption policy will be necessary. However if the answer is “yes” then it’s likely that the business needs protecting with business interruption insurance.
What events does business interruption insurance cover?
The two most common causes of business interruption claims are fires and floods. Ultimately though, business interruption exists to protect businesses from any property related incident that affects its ability to trade, so other causes for a claim may include burst pipes, impact, storms, theft and vandalism.
What is the business interruption indemnity period?
The business interruption insurance indemnity period is the period during which a business’ earnings are covered under the terms of the insurance policy. The ‘maximum indemnity period’ is the period of time (usually 12, 24 or 36 months) that the insurer will cover business interruption losses, starting from the date of the claim incident.
When choosing an indemnity period, it is important to consider the maximum amount of time it would realistically take for your business to be able to trade again independently, taking into account such factors as how long it would take to rebuild damaged buildings, and replace lost stock and equipment. Therefore, it is arguably best to have an over generous indemnity period, rather than one that may fall short.
What is the material damage proviso?
In simplest terms, the material damage proviso is a condition within the business interruption policy that exists to minimise the period during which the affected business will be interrupted. All business interruption policies have a material damage proviso.
The proviso requires that the policyholder maintains active material damage policies at all times to protect the property in question. The purpose of this proviso is to ensure that in the event of damage, funds are available to repair or replace damaged assets, thus minimising the time it takes for a business to resume full trading, thereby reducing the time the business interruption insurer is required to pay out.
Am I covered?
Business owners often assume that other insurances, such as buildings and contents, will cover loss of income following a disaster at their business, however these insurances make no allowance for any financial losses sustained as a result of the initial damage sustained.
While buildings insurance can be bought as a standalone policy, business interruption is typically sold as an add-on to a business policy, and therefore it is important to check the level of cover when taking out or reviewing a policy.
How do I make a claim?
Due to the complexities and forensic nature of business interruption claims, it can pay to have a professional on your side to help calculate the claim on your behalf. This is where a Loss Assessor can help.
A Loss Assessor is an insurance professional, who works on your behalf to prepare and present your claims and negotiate a fair settlement in a timely and efficient manner. The Loss Assessor will calculate your business’ loss of profits, and ensure the claim is inclusive of both tangible and intangible losses. Crucially, the evaluated loss should be based on business forecasts (what would have been achieved had the event not happened) and not simply the previous years’ earnings. This should take into account all influencing factors such as seasonal variations and planned expansion.
Using a Loss Assessor takes much of the stress away from making a claim, which frees you up to focus on getting your business back on its feet.
Working with Us - 4 Big Advantages
• accommodation
• interim funding
Insurance Claim Frequently Asked Questions
We work on a No Win No Fee basis
Our first appraisal is FREE OF CHARGE and we work on a no win – no fee basis.
If you’d like to use your own builder, your insurer’s builder or want a cash settlement, we can negotiate any of these options for you. In these cases, we charge a small percentage of the claim value. If we do have to charge a fee, we always expect it to be offset by the increase in settlement we achieve.
It costs nothing to seek our advise on any situation. Please give us a call on 087 2673390
Click here to read our fee options in full
While many insurance companies will assist you at the outset of your fire claim, their only responsibility is to ensure costs are covered to restore your property and replace affected contents. The most stressful and time-consuming day-to-day elements will be left to you to organise and oversee alone if you do not appoint a Loss Assessor
There is no reason why your insurance company or Loss Adjuster should discourage you from appointing your own Loss Assessor to manage your fire insurance claim. If your Loss Adjuster is trying to dissuade you from using our services, you should question why they are against the idea of you being equally represented. After all, a Loss Assessor can only help a policyholder claim for what is legally covered within their insurance policy
We provide a range of services including public loss assessing, claims consultation and even pre-loss assessments to examine your property and make sure you are not under-insured or over-insured.
The types of claims we manage include:
- Fire, explosion, lightning, earthquake
- Smoke
- Storm or Flood
- Escape of Water / Burst Pipe
- Impact Damage
- Theft / Malicious damage / Vandalism
- Third Party Claims
- Subsidence / Heave
- Freezing
- Escape of Oil
- Accidental Damage
1. Call us… BEFORE you call your insurance company
We will handle all communication with your insurance company. We will report the claim, using the specific terminology that Insurance companies understand and ensure your claim gets off on the right foot.
2. We will assess the coverage under your policy
We will review the terms, coverage, and benefits your policy offers
We explain the fine print, so you understand any restrictions or requirements specified in your policy
3. We help you secure interim funds if needed
You may be able to request advance funds from the insurance company so you can support your needs during the time the claim is being processed. We can help with this.
Work with other professionals (accountants, engineers, consultants, etc.), help you manage your finances with respect to the loss
Organize and prepare a complete list of your additional living expenses for residential claims. Work with your insurance company to obtain reimbursement for these expenses
4. Assess the Damage and Submit the Claim
We will conduct a detailed review of all damage to your property, evaluate it, and document it. This may include procuring replacement estimates or specialist quotes, which we will provide.
We will prepare and submit all completed documentation to the insurance company using industry-standard language and terminology, maximizing the likelihood of a fair and prompt settlement.