All You Should Know Before Filing A Claim For Business Interruption Insurance 

Posted on Jan 16, 2023

All You Should Know Before Filing A Claim For Business Interruption Insurance 

 

Business interruptions are unexpected and can deplete the finances of the business owner. Business interruption insurance in India provides a perfect cushion to the business against any financial or property losses due to interruptions and allows them to restart their operations. However, to ensure a favourable outcome, the claims process must be completed correctly. Here are the tips for filing business interruption insurance claims.  

 

  1. Report the losses to the insurance company 

 

It is essential to inform your insurance service provider at the earliest possible time about the losses incurred in the business due to unexpected events or circumstances. Get in touch with the insurance company to file a claim for the industry's losses. The insurance company then provides the documentation for the mandatory report. It needs to be filled out to begin the business interruption insurance claim procedure. 

 

 

  1. Hire public insurance adjusters for assistance 

 

Suppose you think the claim settlement process will be lengthy and cumbersome. In that case, you can plan to hire expert public insurance adjusters such as Global Insurance, to manage your insurance claims process. The adjusters will ensure maximum recovery for your business-related losses. They can guide you on the best strategies to ensure you receive a favourable outcome from the claims process.  

 

Most insurance companies have strict regulations and policies related to business interruption insurance claims. A highly experienced claims adjuster can assist you in deciphering your business insurance policy and working to find the best available solution for a successful claim.  

 

 

  1. Thoroughly read the business interruption policy

 

When you file for a property damage insurance claim, you must thoroughly read and understand your insurance policy. It will tell you how you could present all the facts to the insurance company in a way that will help your claim go through.  

 

Understanding the deductibles and the limits of the policy beforehand takes away all the stress and anxiety linked to the business interruption and its insurance policy and help you build a water-tight case that qualifies for the claims of the business interruption insurance. The standard features covered in the business interruption insurance policy are as follows: 

 

  • Business income cover: The insurance coverage pays the income the enterprise would have otherwise received had the loss not happened. It includes net profit before taxes, payroll and daily operating expenses. 

 

  • Extra expense cover: The insurance coverage pays for temporarily moving the business to a new area and continuing the operations. The policy includes essential and feasible business expenses while the earlier property is restored. 

 

  • Dependent property insurance or contingent property insurance: The business interruption insurance coverage is also called supply chain cover and covers any income loss due to any damage to the property of the critical supplier or at the client location. 

 

 

 

  1. Analyse the losses and calculate the business interruption losses 

 

Review all the aspects of business operations. It helps you determine what is affected and what is not and whether the losses partially or entirely impact profits. A review of this nature aids in determining the length of the business's shutdown.  

 

Also, maintain flawless financial and operational records of the business pre- and post-incident. If required, you may have to collect additional documents to calculate the total losses due to business interruption. The necessary details include the following: 

 

  • Cost savings 

  • Additional costs incurred 

  • Fixed costs 

  • Loss of sales and customers 

 

If the claims are based on damages affecting your physical business location, the damage is considered substantial enough to cause an interruption. You need to do a detailed examination of the site. Take photos or videos of the damage and document it to file a claim for business interruption insurance in India. 

 

Experienced adjusters at Global Insurance are equipped with extensive training and experience to handle trivial claims cases and ensure that the client receives the best settlement. To know more about property damage insurance, you must visit Global Insurance today.