Victoria Financial information: Include Insurance On Your Travel Checklist
Making a Claim For Business Interruption
Author: Derek Rogers
If your offices have been affected by fire, floods or storm damage, more likely than not you will have incurred a significant amount of time where normal service was impossible. The knock on effect from this is that you end up losing business and falling behind; this can be equally catastrophic.
The first thing you can do to lighten your exposure to this risk is to ensure that your business and property are comprehensively insured. Whilst it may seem a little excessive to get cover for seemingly extraneous occurrences such as flooding, you can never be sure what is just around the corner. Floods don't just occur as the result of high water levels for example; they can also be triggered by burst pipes and faulty sprinkler systems.
Damage from water and fire can be extensive, if not total. Within a few minutes thousands of pounds worth of equipment may be lost, the building structure damaged and your offices rendered useless for days if not weeks. Business interruption is an unfortunate bi-product of the damage caused to a company and their equipment or stock. Most don't have extensive backup plans to cover major disasters and so are all the more susceptible if the worst should happen.
The good news is that some insurance policies, indeed most should cover business interruption to some extent. Therefore whilst the claims assessor is looking into the physical damage incurred, you can also claim for the costs that have built over the course of your businesses downtime.
Of course when a company is unable to operate at its full capacity there is a good chance that it'll suffer financially. This may be represented by a short-term loss of trade or even a longer-term issue of losing clients and large amounts of stock. However bad the damage, you want to ensure that it isn't enough to cause you lasting difficulties, which is why claiming for business interruption is so vital to so many industries.
The compensation for business interruption will be taken from your insurance policy, or that of anybody found to have caused the damage that has caused you to not be able to function fully as an enterprise. As with any insurance claim though, it is vital that you collate all the details and evidence needed to ensure that you get the full payout and aren't left with a sum that barely covers your costs.
One way of getting the fullest amount that you are entitled to is by hiring a loss assessor to deal with your case. Ordinarily you would only hire an assessor for larger claims as there is a fee associated with these services, but in cases where there is likely to be a lot of legal litigation they could prove to be invaluable. As loss of business isn't as easy to value as any physical damage you may well require the expert advice that a legal professional can offer.
Making a claim for business interruption therefore isn't always straightforward; but that isn't to say that it isn't worth exploring to its fullest extent. Insurance companies aren't renowned for being overly generous when it comes to any size of payouts, so make sure that you have the proper legal representation and ensure that you are able to supply any details that are required to pursue a successful claim.
Don't let your business become hijacked by misfortune. Accidents can happen at any time and in any environment, preparedness and effective reactions when they do are the only way to effectively counteract them.
About the Author:
Derek Rogers is a freelance writer who represents a number of UK businesses. For Consequential Loss and Business Interruption Claims, he recommends Morgan Clark.