Business Interruption for Flooding
Flooding can have catastrophic consequences for businesses. Not only must they remain closed until the flood waters recede, but there may be thousands of dollars in damage from the water. Those business owners have no income coming during this time while bills still need to be paid.
Natural disasters like Hurricane Harvey cannot be prevented. The wind and rain from these horrific storms can wreak havoc on buildings and the inventory inside. The high winds cause damage to roofs and windows. It may cause leaks inside which lead to damaged property. Flooding from situations like the Barker Dam which allowed the overflow of hurricane waters into parts of Houston can fill businesses and damage goods, supplies and equipment.
One of the primary issues with flooding is structural damage. The water can get inside joists and other structural elements, causing them to weaken. An inspector will be required to determine if the building is still structurally sound or if repairs are necessary to make it safe for occupancy.
Goods and materials that get wet or sit in water may need to be replaced, which means lost inventory. Equipment used to make the items or run the business can also be damaged beyond use. There is also a risk of mold and mildew, which makes the building unsanitary for customers or employees.
While insurance adjustors are determining the amount of loss, businesses must remain closed. No revenue comes in, which can prove to be a hardship for the business owner.
Insurance Coverage for Flooding Losses
Business interruption insurance is designed to help businesses through these hard times. It is extra coverage added onto your basic policy. It often comes as part of a business insurance package. The purpose of this coverage is to pay for lost income until the business can be functional again.
Unfortunately, many business owners have found that their claims have been denied. Some insurers claim that events like the Barker Dam and Hurricane Harvey don’t qualify for coverage. Even with all-risk policies that don’t including flooding exclusions, many business owners find their insurance providers are refusing to pay their claims.
These policies are designed to pay for the amount of revenue lost until your business can reopen. They may also include contingent coverage, which means a supplier was directly affected by these events, which has led to your business being unable to operate.
These policies are often complicated with exclusions and restrictions included in the policy itself or as an addendum. If you have suffered loss to your business because of flooding and been turned down for a claim with your insurance provider, you need to obtain legal help. An attorney can read the policy and determine if you have a case against the provider.
Insurance companies want to protect their best interests over that of their customers. You need the compensation you are entitled to after paying in on the policy for years. A business interruption law firm can help you get the compensation you deserve and need to keep your business open.