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What you should know about business interruption insurance

Businesses face threats from many angles. That includes unexpected events that are not in a business owner’s control, such as severe weather or repair work that impacts the use of a commercial space. Because of this reality, some companies here in Colorado opt to get business interruption insurance.

So what, exactly, can business interruption insurance cover? Here’s a quick overview.

What is business interruption insurance?

Business interruption insurance is pretty much exactly what it sounds like. If some type of specified disaster or unexpected event makes it impossible to run your business for a certain period of time, business interruption insurance may kick in to help. It might cover things such as:

  • Expected profits the business would have earned during that time
  • Lease or mortgage payments
  • Salaries
  • Equipment costs, such as computers
  • Costs of running the business from another location

The insurance will often cover various events, such as damaging weather events, crime that affects the business’ working conditions, or if significant work needs to be done to the property (such as asbestos removal), the Colorado Department of Regulatory Agencies explains.

Exactly which situations are and are not covered can vary from policy to policy however, so it’s important to read the language thoroughly to check for specific exclusions.

What happens if insurance denies a claim?

Unfortunately, getting a fair insurance payment is not always simple. Sometimes insurance companies may even wrongly deny a claim. This can be a serious problem for a business, which needs to operate in order to make money and thrive. If insurance money you expected to be there doesn’t come through, it can result in a serious setback.

If you believe an insurance company wrongly denied your claim, it may be time to consider speaking with an attorney who is well-versed in insurance law. They can help assess your case and explain your potential legal options for trying to obtain what you are owed.

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The Law Office of Samuel G. Livingston, P.C.
25188 Genesee Trail Road Suite 140
Golden, CO 80401

Phone: 720-443-5876
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