Claiming direct physical damage caused by a storm is a relatively simple matter. However, when the damage extends beyond the physical, determining monetary losses can get complicated. In fact, according to the National Academy of Sciences, the Deepwater Horizon oil spill caused damage to society as a whole, well-beyond the Gulf region, with long-term damages yet to be determined at the time of the report.
Even in the local area of a disaster, businesses may appear untouched by man-made or natural disasters that actually have a profound effect on operations. This calls for interruption in business insurance, which can play a vital role in the survival of a company. However, when the damage is not immediately obvious, you may need a Fort Lauderdale insurance claim law firm to support the merits of valid claims.
Disaster Damage is Not Always Tangible
A company does not need a waterside location to be affected by a hurricane or even an oil spill. The following are just a few examples of how physically-untouched Florida business can be affected:
- Hotels and restaurants can suffer from severely-reduced business from tourists who stay away from the area.
- Stores lose business when people and businesses that are directly affected by a disaster no longer have the funds to make discretionary purchases.
- Manufacturer processes come to a halt when they cannot easily obtain parts because their suppliers sustained direct damage.
- Employee-driven businesses sustain slow-downs when workers from hard-hit areas must deal with their own damages or cannot navigate destroyed roads over an extended time period.
Your business can also lose operation time when civil authorities bar access to buildings or when utility service is interrupted. When purchasing business interruption insurance, you absolutely need to look at the likelihood that you are at risk for significant losses, even when your business does not sustain direct damage from a likely catastrophe. Purchasing a business interruption policy that covers only direct damage can leave you uncovered in situations like these.
Proving Damages From Interruption in Business Can Pose Challenges
Even with the right type of business interruption coverage, insurance claims adjusters often dispute valid claims. While quantifying intangible losses — particularly lost profits — requires extensive documentation, a Florida insurance claim attorney with a specific background in business interruption and other commercial insurance issues can help you develop compelling evidence to support your claim.