When a loss occurs in a place of business, a policy holder must deal with the loss of income in addition to property and personal damage. Often times, the stress of reopening a business and returning to normal can be a daunting task for business owners and their staff. An adjust can help handle much of the burden caused in the aftermath of a commercial loss. Commercial properties often have unique policies specifically tailored to fit the needs of their business, and any oversight after a catastrophe could result in a settlement that is disadvantageous to the policy holder. A licensced adjuster can be very useful in helping to return a business back to normal in order to minimize a loss of income. Commercial losses typically are not total losses, as certain items may have significant salvage value. It is important to consult with a licensced adjuster to determine if your equipment is salvageable and if so, how it can impact your claim.
NYAB has outlined the two main parts of commercial insurance policies
Business Personal Property – This coverage covers items such as equipment, fixtures, and furniture that is individually owned by the insured and used in their business.
Loss of Income/Business Interruption – This coverage protects a commercial property owner from lost revenue associated with an inhabitable property.
Continuing expenses – Continuing expenses coverage pays for expenses that continue despite the business’s disruption such as payroll and the interest portion of the business’s mortgage.
Extra Expenses – Extra expenses coverage pays for those expenses that your business incurs that it would not have incurred if the property was not damaged. For example, if you must rent office space while your office is rebuilt, that is an extra expense resulting from the property loss.
Things to Consider When Filing a Commercial Claim:
- Check your policy for definitive deadlines to submit claim forms.
- You will be required to fill out and submit a Proof of Loss.
- Start compiling copies of tax returns, profit and loss statements
- Lease agreements
- Be aware of any coinsurance clauses in your policy
- Inventories must include the item, brand, age, amoun, and price to replace
- Document your losses with digital photos, video and notes.
- Whose insurable interest is it?
- It’s the policyholder’s responsibility to prove these losses to the insurance company.
· Get independent estimates from local contractors who are qualified to do the repair work.