Business Interruption Claims
All business interruption coverage - coverage for the lost income as a result of a covered peril - is triggered upon damage to the insureds property. Business interruption claims are of two types - those under a business interruption coverage provision and those under a contingent business interruption (C.B.I) provision.
Regular business interruption coverage is intended to return to the insureds business the amount of profit it would have earned had there been no interruption. For this type of coverage to apply, four requirements must be met:
a)There must be physical damage to the insured property caused by a covered peril;
b)The physical damage must result in an interruption of the business and cause an actual monetary loss or loss of business income;
c)The loss of income must occur during the "period of restoration" as defined by the policy;
d)The insured may only recover for the actual loss sustained.
Extra Expense Claims
Extra expense coverage is designed to compensate an insured for extra expenses associated with an insurance claim incurred to minimize the suspension of its business and to continue its operations. Such expenses caould be incurred to minimize the suspension of business and continue operations at the insured premises or at a temporary location. This coverage is not a substitute for having inadequate limits for property damage or contents.
If your business interruption or extra expense claim has been wrongfully denied, ignored, undervalued or underpaid, Danahy & Murray can help.
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