It is always a good idea to keep your business protected at all times from unexpected situations. The recent spread of Coronavirus has brought businesses to a standstill due to the lockdown and tough restriction on the movement of people and products. The government has ordered the shutdown of businesses that offer non-essential services. This shutdown is bound to affect business income, leaving owners wondering whether insurance covers losses arising from Business Interruption. Today we discuss Business Interruption insurance, what it covers and how Ocean Point Public Adjusters can help you get the most of your BI claim in the aftermath of the Coronavirus lockdown.
How Do You Get BI Insurance?
The outbreak of COVID-19 has had a significant impact on businesses. As authorities close down premises to limit the spread of the virus, economic growth is expected to fall below predicted estimates. The closure of businesses and loss of revenues raises questions regarding business interruption under property insurance policies. Business Interruption coverage comes bundled with your commercial property insurance policy. This brings with it a host of complications, and it is in your best interests to consult a Public Adjuster who will file and follow up on the claims. Ocean Point Claims Company will help you with your insurance claim anywhere in Florida.
Does my Insurance Cover Coronavirus?
At Ocean Point Public Adjusters, we are committed to getting all your claims filed. In the wake of the Coronavirus spread, one thought that worries most business owners is whether their businesses are covered against the Coronavirus. Some General liability policies don’t protect your business from the effects of the virus as the policy only compensates bodily injury and property damage for third parties. After the SARS outbreak of 2003, insurers put in a condition that could exclude loss of income due to viruses/bacteria. Although your policy may have a virus exclusion, you may still have coverage. This is an important reason to let Ocean Point review your policy.
At Ocean Point, we work with you, the policyholder, to demonstrate that your business suffers damage and loss as a result of government-ordered closure. This proof of damage makes you eligible to Business Interruption compensation.
Our adjusters go through every detail in your insurance policy to ensure you understand the conditions of your insurance contract. When submitting your Business Interruption claim, we will demonstrate that your insured business property was interrupted by not only the virus. We will document these interruptions and show that they needed some remedial actions for your business to get back on its feet.
Some other types of business interruption that could lead to loss of revenue during this outbreak includes: crisis management coverage, communicable disease coverage, or cancellation of bookings coverage. These events affect your revenue and business continuity and should be taken into account. Some insurers would want proof that the virus is present in your premises for it to count as physical damage. Our adjusters would verify whether this is the case, and develop plans demonstrate loss of income due to a shift in the workforce or supply chain before we present your claim.
In order for us to file your claim, there should be a correlation between damage arising from the virus and loss of business income. Some losses that you can sustain during this pandemic period are: absence of staff, reduction in client numbers, an overall reduction in the demand of your company’s products and government closure. During the claims process, our adjusters are on hand to demonstrate a direct link between these losses and damage resulting from the aftereffects of the Coronavirus.
The BI Claims Process
Once we can prove that your business has indeed suffered an interruption due to coronavirus, you will need to know how we go about the claims process. Along with your Commercial Property Insurance comes a Business Income Coverage form. This form adds coverage for loss of income, business interruption and losses due to actions taken by authorities. Let us explore these, and their implications in the wake of the Coronavirus pandemic:
Business Income/ Interruption
This form provides coverage for income lost as a result of business closure during the lockdown. In this case you shall prove that, indeed, you suspended business activities due to the lockdown and the BI coverage will only pay for lost income until normalcy resumes. As businesses close down globally, there may be no apparent physical damage due to the Coronavirus. But if traces of the virus are found within the premises, it constitutes microscopic-level damage and may trigger BI insurance until the contaminants are removed.
Contingent Business Interruption
This form covers lost income that arises from suspension of business at suppliers’ and client sites. When China began a lockdown due to the Coronavirus, most American companies felt the pinch since China is a source of raw materials and a big part of the supply chain. If your current insurer covers Contingent Interruptions, it is your duty to prove that the shutdown is a result of the virus’ physical damage.
Civil Authority Coverage
If civil authorities prohibit access to your business premises, driving down income, then you could be eligible for a Civil Authority Coverage. Currently, governments are working to contain the spread of Coronavirus through quarantine measures, which means limiting access to business premises and reducing movement of products. The settlement of this coverage depends on the location of contamination and the actions taken by the authorities.
Having explored the various forms covered in a BI claim, below is the information you will need to supply when filing for compensation:
- Revenue reports
- Expense reports
- Documentation of business history
- Payroll and HR information
With these, you could calculate how much your BI can cover using the formula:
BI Loss= Net income + Continuing Expenses + Additional Expenses
The Need for a Public Adjuster
The process of filing for a Business Income Claim can be tedious, and if you don’t do it right, you will end up receiving little to no compensation on your lost revenue. Which is why you need a Public Adjuster to help smooth out the process. They will work with you to make sure you maximize your claim and see to it that company adjusters treat the BI claim like they would any other claims. We highly suggest that you engage one of our experts to help you determine the most that you can get out of your claim and have the serenity that when this Coronavirus pandemic is over, your business will be back on its feet.
Conclusion
The Coronavirus has affected all business operations. In the past, insurance companies usually took the burden of crisis of the business owners’ shoulders. Insurance policyholders need to arm themselves with the right knowledge in order to soften the blow of such a crisis. With the help of Ocean Point public adjusters, one can determine exactly how much they can claim, and get help with the entire process of making a claim. A proper understanding of your policy document combined with an aggressive follow up of your Business Income claim could help you recover lost revenue and keep your business running in these uncertain times.
