Insurance Claim
Generally, there are three types of business interruption insurance typically encountered:
- Business interruption insurance is intended to compensate the insured for the income lost during the period of restoration or the time necessary to repair or restore the physical damage to the covered property.
- Extended business interruption provides coverage, typically limited by a period of time, for the income lost after the property is repaired but before the income returns to its pre-loss level.
- Contingent business interruption provides coverage for the insured's loss of income resulting from physical damage, not to its property, but to the property of providers or suppliers on the one hand or consumers of its product or services on the other.
Business interruption insurance typically pays for income that is lost and expenses that are incurred while operations are suspended. A business interruption insurance policy typically covers expenses including:
- Profits that would have been earned if it were not for the loss (usually limited to 12 months).
- Continuing costs - Operating expenses and other fixed costs still being incurred by the business (these expenses must be ordinary and necessary such as salaries and related payroll costs during the interruption period).
- Replacement of inventory and machinery.
- Temporary location - The extra expenses for moving to, and operating from, a temporary location may be covered. (The expenses for permanent relocation, if necessary, may also be included),
- Other expenses - Businesses are reimbursed for reasonable expenses (beyond the continuing costs) that allow the business to continue operating while the damage is being repaired.
Oxburgh Row provides quality independent valuations and will work closely with the client's legal counsel to recover the damages that are warranted under the subject policy.