Even if your business lost money at the time the loss occurred, it may still be entitled to a claim payment under this coverage should there be a business interruption. This is because the amount paid under this coverage is based on a formula that takes into account continuing expenses that are incurred during the period of restoration. Although it is part of your Business Income policy, insureds are not completely aware of the formula used to calculate the amount due them nor what is needed to document and prove up the loss.
In addition, an insured may incur additional costs during the time operations are interrupted for items needed to resume operations quickly. Some of these expenses, such as moving into and paying rent for a temporary location while the damaged location is being repaired are obvious. There are also other expenses that are paid that may be overlooked because you are too busy trying to resume operations quickly to identify and document them.
Your insurance company won’t help you with assembling the documentation needed to support your claim. Because they won’t help you, they will settle the claim based on inadequate documentation that you submitted because you were unaware about what is needed to support your claim, and are dealing with an insurance company that won’t provide you with the needed assistance. The result will be a check that is less than the actual amount of the loss that was sustained.