Ten (10) Mistakes to Avoid When Filing a Business Interruption Insurance Claim

Common errors in a business interruption claim might prevent you from receiving the pay you deserve. As skilled business interruption insurance attorneys, we understand what to avoid while submitting a claim. 

To make the claims process run as smoothly and swiftly as possible, you can avoid typical blunders. Bachus & Schanker, LLC attorneys highlight 10 things to avoid when submitting a business interruption claim.

1. Incomplete Evaluation:

If your business closes due to Coronavirus and COVID-19, you should start working on your claim straight once. However, in order to expedite the process, you may overestimate your genuine losses.

In your haste to obtain a settlement payment, you may overlook long-term harms and subtle losses. When filing a business interruption claim, an incomplete appraisal is a significant error to avoid. Working with a business interruption lawyer ensures that you adequately value your claim.

2. Inadequate Documentation:

Winning a business interruption claim necessitates documentation. The insurance company may try to refuse your claim if you do not provide the necessary information. As a result, working with a forensic accountant may be beneficial. 

An accountant may assist you in creating the documents required to identify and verify your losses. A business interruption attorney has access to a network of resources and can collaborate with a competent forensic accountant to establish your case.

3. Assuming that all cases are identical:

The amount of financial compensation you are entitled to is determined by the terms of your specific contract. While you may believe that all company insurance is the same, this is not the case. 

There are several significant distinctions between business interruption insurance policies. You may choose between basic coverage, additional coverage, and various deductibles and waiting periods when you purchase your policy. 

What matters are the provisions of the one-of-a-kind policy you have in place. Don't assume that what works for someone else will work for you. The language in your own policy is the only thing that matters.

4. Excessive Talking:

What you say will be used in court. Keep in mind that the insurance agent and the adjuster are both employed by the insurance company. Despite the fact that they are your contact persons, there is no confidentiality with what you tell them. In fact, they can and will most likely use what you say against you.

It's not in your best interests to strike up a conversation with anyone from the insurance company. Your business interruption lawyer can help you handle discussions with the insurance provider during the claims procedure without jeopardizing your claim.

5. Incorrect Law:

Business interruption claims are often governed by state law. However, it is not always apparent which state law applies. Your business may have sites in more than one state. The corporation may be located in one state, while the insurance company is located in another. Furthermore, you may engage with consumers from various states.

Make the error of presuming that state law applies. Because the Coronavirus COVID-19 pandemic represents a new disaster throughout the world, different jurisdictions are creating alternative approaches to dealing with insurance claims related to the crisis. Business interruption attorneys can assist you in determining what legislation is applicable and how it pertains to your specific situation.

6. Acknowledging Ambiguities:

A worldwide epidemic resulting in a flood of insurance claims is novel. It's never occurred like this before. The phrases Coronavirus or COVID-19 will not be found in your insurance contract.

But that doesn't imply you don't have a valid case. Indeed, under business law, ambiguities must be resolved in favor of the insured party. More than one interpretation of the policy isn't always an ambiguity. 

However, if the insurance company claims that there is no claim since the policy does not specify Coronavirus or COVID-19, don't believe them. Ambiguities frequently work in your advantage as the insured party.

7. Consider the Catastrophic Effect:

The COVID-19 problem has resulted in an unprecedented amount of business interruption insurance claims. The insurance firms are dealing with a record amount of cases to process and resolve. 

The only instance that counts to you, though, is your own. You should not earn any less compensation for your business interruption claim simply because many other individuals have claims as well. 

Accepting a low offer simply because the insurance company claims a catastrophe is a bad idea. You are entitled to the entire amount for your losses and damages under the terms of the contract.

8. Agreeing Too Quickly:

The insurance company's purpose is to settle for the smallest amount feasible. When they make an offer, don't assume it's the highest it'll go. The insurance company is not the final authority. 

If the insurance company does not treat you properly, you may file an appeal, continue to negotiate, or even pursue a legal complaint. If you settle too fast, you may receive less than you deserve.

9. Giving Up:

Filing a business interruption claim can be time-consuming and unpleasant. It's even more aggravating if your insurance provider gives you the runaround. Don't give up if your insurance provider mistreats you! The insurance policy is a legally binding contract. 

You have the right to take action if you do not receive a fair remuneration. Because your time to make a claim is limited, you must act immediately. Giving up too soon may hinder you from receiving what you are entitled to. Remember that there are actions you may take to seek justice and earn fair compensation.

10. Going It Alone:

A business interruption case can be difficult to navigate. It is particularly complicated in the age of Coronavirus and COVID-19. You can, however, hire an experienced business interruption insurance lawyer to assist you. 

Insurance litigation attorneys have years of training and experience. We're ready for this time and ready to fight for you. With our legal team, you have a team of qualified professionals ready to handle your case as efficiently as possible.