Hurricane Claim Questions

If my business is significantly slower after I reopen following a hurricane, can I file a claim with my insurance company for lost revenue?

Most businesses have “business interruption” insurance which is designed to cover: 1) profits you would have earned had you not been closed due to the disaster, 2) operating expenses, such as water and electricity, you may incur even if closed, and 3) expenses for temporary premises.

If you have a business interruption policy, you may be entitled to compensation for the “extended period of indemnity.” This period starts once you have completed your repairs and reopened your business and extends for a period specified in your policy, which can be several months or as long as a year.

The payments you could be entitled to would be equal to the difference between your pre-storm revenue and your post-storm revenue, based on your financial records. You will need to have proper documentation to show what your business earned prior to the storm.

It is possible that your insurance company will challenge your claim by arguing that your lost revenue is attributable to general economic conditions instead of the hurricane. You will need legal counsel to be by your side throughout the claims process. To schedule a free consultation with Arnold & Itkin LLP, call a Houston insurance lawyer at the firm today.