Proving Your Losses - How to Prepare Your Business Interruption Claim

If you’ve been reading this blog, you should realize by now that any business owner with a commercial insurance policy may be eligible to receive business interruption compensation. Do not try to determine your eligibility on your own, and do not settle with a denial from your insurance company. Our associates are here to help you prepare your Business Interruption Claim , free of charge.

While you should not try to determine your eligibility alone, there are things you can, and need, to do to maximize and preserve your potential claim. Your claim amount will be valued through your business records and/or other proof of the net losses that your business has suffered during the period of interruption. Thus, it is absolutely critical that you keep an accurate accounting of your income and expenses. This includes keeping receipts, invoices, and statements to reflect your business expenses.

Most policies only cover an actual loss of “business income,” which is defined as the net income the business would have earned if it had not been interrupted, plus normal operating expenses that were actually incurred during the period of interruption. Therefore, it is critical to keep a detailed accounting of all expenses not only during the interruption period, but prior to the interruption as well. Claiming lost profits can be trickier, and Florida courts have held that proof of actual profits for a reasonable time prior to the claim is necessary to recover lost profits.

Thus, if you have not been keeping a detailed accounting of revenue and expenses, along with the appropriate documentation to establish your expenses, we strongly advise that you gather and prepare these materials so that we can help you prepare your Business Interruption Claim, and and ensure that you receive maximum compensation.

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