Many commercial property insurance policies provide coverage for loss resulting from business interruption that is caused by a covered event. This type of loss is typically referred to as business income or business interruption coverage. Similar coverage is also generally provided under homeowners’ policies listed as loss of use coverage or additional living expense (ALE). A standard business interruption provision requires the carrier to pay for the actual loss of business income (as defined by the insurance policy) sustained due to the necessary suspension of “business operations” during the period of restoration for damage to an insured’s property caused by a covered event. This means that if your business had to shut down for repairs after a storm, for example, and your insurance policy covers it, not only would it have to pay for the repairs, but also any covered revenue your business may miss out on during the repairs.
If an insured makes a claim for business income loss, the insurance company will usually retain the services of an outside accounting firm to investigate the insured’s claimed business interruption loss. The accounting firm will generally request extensive financial documentation from the insured to determine the amount of loss. If you believe the accounting firm hired by your insurance company has understated the amount of your business interruption loss, you will need to retain the services of your own independent accounting firm (or an otherwise qualified accounting professional) to challenge the carrier’s expert’s calculations. For some commercial property loss claims, the amounts at stake for just the business income portion of the claim can be very large.
At Smith Kendall, PLLC, we have assisted many commercial property clients (e.g., bread factory, restaurants, hotels, storage facilities, etc.) in recovering the full amount owed to them under their business interruption coverage. It is important to work with qualified accounting professionals who have experience in working on insurance business income claims as well as with the specific types of business at issue in a particular claim. During our more than 15 years of experience representing both residential and commercial property owners, the insurance attorneys at Smith Kendall, PLLC, have developed relationships with the appropriate accounting professional and financial experts able to help the insured obtain what they are owed under their policies.
If you have any questions concerning the handling of your business income claim, please call the Dallas business income loss attorneys of Smith Kendall, PLLC, at (214) 361-6124 to discuss your case. You don’t owe us anything unless we recover money from the insurance company through settlement or litigation and your initial consultation is free of charge.