Business Interruption Insurance Claims

I’m David Holub, an attorney focusing on personal injury law in northwest Indiana.

Welcome to Personal Injury Primer, where we break down the law into simple terms, provide legal tips, and discuss personal injury law topics.

Today’s question comes from a caller who has difficulty with his insurance company on a business interruption policy covering his business that was damaged during a protest that devolved into vandalism. He wants to know how he could get the insurance company to pay his claim.

What if your business is vandalized during a riot or out of control protest?

Does business insurance cover vandalism and theft? If not, how does a business survive if it experiences broken windows and stolen merchandise?

An insurance claim typically proceeds with an insured submitting proof of loss. This document explains what was lost as a result of vandalism or theft.

In discussing the matter a little more with the caller, he was trying to complete this proof of loss form but was having difficulty.

Many standard business policies will cover physical damage, stolen merchandise, and often even stolen or damaged personal property of a business’s owners or employees.

A policy may also cover losses because you could not operate your business, because it was unsafe to open, or because the property damage would not permit you to open.

Physical damage to a building typically includes structural damage: broken windows, damaged doors, and wrecked furniture. Water and smoke damage or environmental contamination may also be at issue.

Read and review your policy.

Often business interruption policies have time limits and focus on the time you suspend operations. Some policies may exclude damage caused by a pandemic or government-ordered shutdown.

If your insurance company denies a claim, see an attorney promptly. It is often wise and helpful to consult an attorney early in the process and well before you even start to complete claim forms.

We suggest you consult an attorney before submitting a claim if at all possible, to make sure you fully comply with claim submission requirements under your policy.

I hope you found this information helpful. If you are a victim of someone’s carelessness, substandard medical care, a product defect, work injury, or another personal injury, please call (219) 736-9700 with your questions. You can also learn more about us by visiting our website at www.DavidHolubLaw.com – while there make sure you request a copy of our book “Fighting for Truth”.