Business Interruption Claims

Fight Against Claim Denial, Delay, and Underpayment

Houston Business Interruption Lawyers

Resolving Insurance Policy Disputes

Our experienced lawyers at Hawash Cicack & Gaston LLP know that it can be incredibly difficult to keep your business afloat if it has sustained major property damage and loss due to weather, fire, natural disaster, or equipment failure. The cost of reconstruction is only part of the financial losses business owners have to account for. They also have to deal with various obstacles arising from business interruption, as well as replacing inventory and reinstalling equipment and fixtures.

With the COVID-19 pandemic devastating our economy, many businesses have been forced to file insurance claims for business interruption losses due to cessation or delays by suppliers and distributors.

What is Business Interruption Insurance?

Business interruption insurance is a policy that business owners can obtain that helps pay for extra expenses or replace lost income during an unexpected interruption of the business. Examples of when businesses may have to use business interruption insurance include if the business is damaged because of a natural disaster (like a wind storm or lightning strike) if a fire forces the business to shut down, or something falls onto the building. When business owner has building insurance, they can rest assured that expenses can be covered thanks to this type of insurance.

Benefits of Business Interruption Insurance

One of the main reasons to have business interruption insurance is so employees can continue to be paid and money is available to cover other expenses. If your business has to unexpectedly shut down, you wouldn’t want your employees feeling like they have to find other employment until your business reopens; or, your business is closed for so long, that your employees find other employment, and when you reopen, your employees aren’t coming back to work for you. It is critical to continue paying employees that way when the business is able to reopen, you have employees to help run the business.

The second reason to have business interruption insurance is so you have the funds available for payments while your business is closed. Utility bills and other expenses won’t stop just because your business isn’t open. By having building interruption insurance, you’ll receive the income you need to keep your business afloat even if your doors aren’t open. This extra income can help with other costs too such as if you decide to relocate your business, taxes, or training costs so employees can feel confident working with new equipment.

How Quickly Does Business Interruption Insurance Go Into Effect?

Business interruption insurance can go into effect as little as 48 hours once it’s activated. The average time for the policy to kick in is between 48 to 72 hours. It’s important for a business owner to check the policy to see how long the insurance will last as there is usually a specific time period of when the policy can be in place.

Work with Our Business Interruption Lawyers in Houston

If you have purchased commercial property insurance to protect against financial losses but your insurance company has undervalued or denied your claim for business interruption damages, then please reach out to our insurance litigation attorneys in Houston so we can discuss your options and devise a legal strategy to protect your rights as a policyholder.