Business Interruption Claim

When business operations are interrupted for any reason, it means automatic loss of revenue. Many business insurance packages include business interruption insurance. This form of coverage is designed to protect your business by restoring it to the same economic position it would have been in had the interruption not occurred. In some cases, however, insurers will deny or substantially undervalue business interruption claims.

At The Lenahan Law Firm, we understand how a loss of revenue can be devastating to a business owner. America was built by small businesses, which is why protecting them with proper insurance policies is so important. Sadly, insurance companies care more about their profits than they do their clients, and so are happy to deny, prolong, or drop a claim if it means they can pay as little as possible. That means one disaster and one denial can shutter a business’s doors forever. That is why we are so dedicated to helping the small businesses of America. If your Dallas business interruption claim has been denied, call our firm at (214) 295-1008. We want to help you.

For insurance purposes, business interruption means loss of business income sustained as a direct result of damage, destruction, or direct loss to the property of the insured caused by a covered peril. Business interruption insurance typically pays for actual loss of business income resulting from the necessary suspension of operations during a period of restoration. Important factors that come into play with business interruption claims are:

Insurance companies are only obligated to pay out if an actual interruption of business occurred, leading to loss of business income.

Business income is calculated as the net profit or loss before taxes that the business would have earned or incurred, plus reasonable operating expenses, including payroll.