Claiming on Your Business Interruption Insurance
As the name suggests, business interruption insurance is designed to cover a business’s profit or income (depending on the policy wording) in the event of an unexpected interruption.
These disturbances can range from events such as natural disasters, fires, theft or any other circumstance that renders your work premises temporarily unusable (again, subject to policy wording).
While other policies will put right the damage caused by an event, they do not make an allowance for any financial consequences faced by your business.
Business interruption insurance is vital for a range of organisations – ranging from small business to multinational companies – regardless of size, every company should have it.
However, for various reasons, it is not enough to simply claim for business interruption. It’s not uncommon for businesses to encounter the sort of problems that have the potential to make things even worse. You might find, for example, that your policy’s indemnity period is not sufficient to cover the time it will take your business to fully recover. You may also find that your business is underinsured, or that you are unable to claim for the full extent of your loss.
For businesses that hold a lot of stock, or require a substantial amount of equipment to operate on a day-to-day basis, claiming business interruptions could be the only way to maintain your business while you’re still getting back on your feet.
When making a claim, most policies tend to cover:
- The shortfall in profits caused by the interruption
- The increased costs of running your business as a result of the suffered event until it runs smoothly again.
However, the process of claiming on this policy is no simple task. It takes a lot of time and effort to correctly quantify just how the business would be doing if the disruptive incident had not taken place.
Tips for compiling your claim
During this time, a loss adjuster will usually examine the insured person’s property. Documented evidence for this claim should be carefully collected, this may include photographs and video evidence to show what damage has been done to the property.
In order to prove lost income, a business will need to show their accounts to confirm their trade history and the levels of income that are likely to have been received prior to the point of loss.
However, younger businesses might need to look at other indicators, such as the current market trends and profit levels for like-minded businesses, as they might experience difficulty showing their losses towards previous trading accounts.
When compiling a claim, seeking external help can be useful in ensuring clear and effective communication on behalf of your company.
That is why loss assessors can be an invaluable service to your company, helping you get the best possible compensation for both tangible and intangible losses to your business.
How we can help
Our loss assessors have a wealth of experience in providing expert advice and support to businesses from the beginning to the end of the claims process, help that can be invaluable to businesses. It’s here that the services and insight of a professional loss assessor will prove invaluable. We have helped thousands of businesses from a wide range of sectors to recover from disaster – so do not hesitate to get in touch.
We understand the underlying difficulties that come with the claims process, and our team provides rigorous assessment of profit margins and thorough evaluation of market trends to ensure the accuracy of provided claims.
Our services extend well beyond just the claim specifics. We know that staff communication is often key in these circumstances, and take an active role in helping businesses respond accurately and with clarity to their employees following an incident.
Based on an intelligent interpretation of your business forecasts, our loss assessors will evaluate your total loss, resulting in an accurate projection of how your business would have performed over the period of the claim. Our experienced loss assessors are experts when it comes to interpreting market trends, seasonal factors, inflation, and budget forecasts, which makes their business interruption claims amongst the most accurate in the industry.
In business interruption claims, loss assessors also work to mitigate the risks of shortfall through underinsurance, and to avoid any of the issues that arise through insufficient indemnity periods in your insurance policy. They will work with you throughout the entire claims procedure, doing all they can to ensure your business’s recovery, and future.
For more information on business interruption claims, or to speak with one of our professional loss assessors, call our 24/7 national helpline on 0844 544 1699.