An important component of commercial property insurance is the business interruption coverage, which insures for a loss of business income resulting from damage to the building from a covered cause. Ordinarily, there must be damage to the insured structure in order to trigger the business income loss coverage. Many policies also provide coverage for extra expenses required to relocate the business until the structure is repaired. Oftentimes, it is critical to retain an experienced forensic accountant to assist with providing the appropriate analysis and documentation in support of a business income loss claim.
There are three basic types of business interruption insurance:
Business interruption insurance is intended to reimburse the insured for the profit lost during the period it takes to repair or restore the physical damage to the covered property.
Extended business interruption provides coverage, typically limited by a period of time, for the income lost after the property is repaired, but before the income returns to its initial level.
Contingent business interruption provides coverage for the insured’s loss of income resulting from physical damage to the property of either the providers or suppliers, or the consumers of its product or services.
The legal team at Christopher Ligori & Associates can assist you in determining the business income loss coverages provided under your policy and the scope of the available benefits through the use of experienced forensic accountants.