How to File a Business Interruption Insurance Claim

business interruption insurance claim

When unexpected events disrupt your business operations, the financial impact can be devastating. Business interruption insurance is designed to help mitigate these losses, providing coverage for income you would have earned if your business hadn’t been interrupted. However, filing a business interruption insurance claim can be a complex and time-consuming process.

In this guide, we’ll walk you through the steps to file a business interruption claim effectively, common challenges to expect, and how working with a public insurance adjuster can help you secure the compensation you’re entitled to. If you’re in Pittsburgh, PA, or nearby areas in West Virginia, Pennsylvania, or MarylandA.H. Neaman Company is here to assist with your claim.


What Is Business Interruption Insurance?

Business interruption insurance is a type of coverage that compensates businesses for income lost due to a covered event, such as:

  • Natural disasters like floods, fires, or storms.
  • Vandalism or theft.
  • Government-mandated closures.

This insurance typically covers:

  1. Lost Revenue: Income your business would have earned during the interruption.
  2. Operating Expenses: Costs such as rent, utilities, and employee salaries.
  3. Temporary Relocation Costs: Expenses for operating your business from a temporary location, if applicable.

Step-by-Step Guide to Filing a Business Interruption Insurance Claim

1. Review Your Policy

Start by reviewing your insurance policy to understand what is covered under your business interruption insurance. Key elements to check include:

  • Covered events (e.g., fire, flood, or government orders).
  • Policy exclusions (e.g., damage caused by gradual wear and tear).
  • Coverage limits and waiting periods.

2. Document the Event

To file a successful claim, you’ll need to provide evidence of the event that caused the interruption. Document as much as possible, including:

  • Photos and videos of physical damage to your property.
  • News reports or official notices related to the incident.
  • Financial records showing the impact on your business.

3. Calculate Your Losses

Work with your accountant or financial advisor to calculate your lost income and additional expenses. This may include:

  • Comparing revenue before and after the event.
  • Estimating future income based on historical trends.
  • Documenting ongoing expenses, such as payroll and rent.

Accurate calculations are critical for your claim’s success.

4. File Your Claim Promptly

Contact your insurance company as soon as possible to notify them of the loss. Submit your claim with the following information:

  • A description of the event and how it impacted your business.
  • Detailed financial records and calculations.
  • Supporting documentation, such as invoices and receipts for additional expenses.

5. Prepare for an Insurance Adjuster’s Visit

The insurance company will send an adjuster to assess the situation. Be prepared to:

  • Show them the physical damage.
  • Provide financial records and documentation.
  • Answer any questions they have about your claim.

Challenges You May Face

Filing a business interruption insurance claim is rarely straightforward. Common challenges include:

  1. Disputes Over Coverage: Insurers may argue that the event isn’t covered under your policy.
  2. Underestimated Losses: Insurance companies may undervalue your claim or challenge your loss calculations.
  3. Delays in Payment: Lengthy claim reviews can delay the funds you need to recover.

How a Public Insurance Adjuster Can Help

public insurance adjuster works as your advocate, ensuring your claim is filed correctly and fairly valued. Here’s how a public adjuster can make a difference:

1. Expert Policy Review

Public adjusters have extensive experience interpreting insurance policies. They’ll identify all applicable coverages, ensuring your claim includes everything you’re entitled to.

2. Accurate Loss Calculation

Public adjusters understand how to calculate complex business losses, including:

  • Lost revenue.
  • Extra expenses for temporary operations.
  • Additional costs you might overlook.

Their expertise ensures your claim reflects the full scope of your losses.

3. Comprehensive Documentation

Filing a strong claim requires detailed documentation. A public adjuster will compile all necessary evidence, including photos, financial records, and reports, strengthening your case.

4. Negotiation with Insurers

Insurance companies aim to minimize payouts. A public adjuster advocates for you during negotiations, leveraging their knowledge to secure a fair settlement.


Why Choose A.H. Neaman Company?

At A.H. Neaman Company, we specialize in helping business owners navigate the complexities of business interruption insurance claims. Our licensed public insurance adjusters have the experience and dedication needed to maximize your compensation.

Here’s How We Can Help:

  1. Policy Analysis: We review your policy in detail to ensure all eligible coverages are included in your claim.
  2. Damage Assessment: We work with experts to document and evaluate your losses accurately.
  3. Claim Preparation: From gathering evidence to submitting the claim, we handle every step.
  4. Skilled Negotiation: We deal directly with the insurance company, ensuring you receive a settlement that truly reflects your losses.
  5. Personalized Support: We guide you through the process, keeping you informed and stress-free.

We proudly serve businesses in Pittsburgh, PA, as well as West Virginia, Pennsylvania, and Maryland.


Real-Life Example

A Restaurant’s Business Interruption Claim

A restaurant in Pittsburgh experienced significant downtime after a fire damaged its kitchen. The insurance company’s initial settlement offer didn’t cover the full scope of lost revenue and additional expenses.

A.H. Neaman Company stepped in, conducted a detailed loss assessment, and negotiated a significantly higher settlement, allowing the restaurant to fully recover and reopen.


Take Action Today

If your business has been interrupted due to a covered event, don’t leave money on the table. A.H. Neaman Company is here to help you maximize your business interruption insurance claim.

Serving Pittsburgh, PA, and licensed in West Virginia, Pennsylvania, and Maryland, our public insurance adjusters are dedicated to fighting for the compensation you deserve.

Contact us today for a free consultation and let us help you get back to business faster!