Business Interruption Claims

In recent times there have been unprecedented reasons for businesses to have been interrupted – namely Covid-19, with all the consequences that have entailed for the economy and your individual business.

However, there is a wide range of other reasons why your business may have to be interrupted, with its usual services suspended, and then financial losses can occur.

Civil or military intervention, severe weather (including earthquakes or hurricanes), damage to utility services, or destruction to electrical, steam, gas, water, sewage, and telephone, fire, or flooding are just some of the reasons your business may have to be put on hold while these interruptions are sorted out.

Business Interruption Insurance

It’s therefore vital that your business is covered with insurance for every possible eventuality and your business interruption insurance is hence a financial coverage that replaces business income lost during such a time.

This type of insurance covers operating expenses, moving to a temporary location if necessary, payroll, taxes, and loan payments.

In extremely rare cases, business interruption insurance can apply if a civil authority shuts down a business due to physical damage to a nearby business, resulting in a loss for your own firm.

However, standard business interruption insurance does not very often reimburse policyholders if the business is closed due to a pandemic – such as Covid-19.

There can be variations to individual policy holders’ insurance coverage, but a typical business interruption insurance clause might be as follows:We will pay for the actual loss of business income you sustain due to the necessary suspension of your “operations” during the period of “restoration.” The suspension must be caused by the direct physical loss, damage, or destruction to the insured property. The loss or damage must be caused by or result from a covered cause of loss.

What your business interruption policy might cover

  • Actual loss sustained
  • Business income
  • Period of restoration
  • Extra expense
  • Service interruption
  • Leader property

So, when a business has to prepare a business interruption insurance claim, specific facts and circumstances should be carefully considered. Still, quite often, you, or your business’ personnel, are unsure how to proceed with the complex requirements, analysis, and support necessary to justify your business interruption claim.

Therefore relying on legal professionals in times such as these is essential.

Legal Expertise

Understanding and executing the complexities of a business interruption claim is essential in ensuring your business gets what it deserves in damages.

There are a number of specific questions which need answers for in making a business interruption claim and requires expertise in the insurance industry’s issues, their concerns, and terminology – all of which can help support you in establishing damages, communicating the basis for calculations, and providing insurance carriers with what they need to help you quickly resolve your covered claim.

When your business faces significant financial loss from an unexpected interruption to your organization, the risks can be high.

Attorneys with legal expertise in this complicated area can deliver proven experience, objectivity, and depth of resources you need when you need them most.

You must seek legal help from the professionals.


Our attorneys have represented clients, both large and small, at large law firms in the Kansas City area.  Call us at (913) 380-4004