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Recovering Lost Business Expenses


In addition to compensation for lost business income, business interruption insurance policies also often provide additional coverage, including compensation for extra expenses. Unfortunately, whether these policies cover the cost of business expenses incurred as a result of the COVID-19 pandemic isn’t always clear, so if you own a business and have suffered losses during the COVID-19 emergency, you should contact an experienced Florida business interruption lawyer who can help protect your legal interests.

Additional Business Interruption Insurance Coverage

Business interruption insurance policies provide policyholders with compensation for lost business income caused by a covered loss, which primarily refers to direct physical losses caused by fires and similar catastrophes. The scale of the current pandemic, however, has caused many policyholders to question whether the same policies could cover losses incurred as a result of mandatory COVID-19-related closures. In fact, these policies could potentially provide compensation for more than just lost standard income, but could also compensate policyholders for what are referred to as additional coverages, such as extra business expenses.

Coverage for Extra Expenses

Many businesses that are suffering through the current pandemic have been forced to lay off employees, stop offering certain benefits, and even close their doors permanently. Fortunately for many business owners who have business interruption insurance policies, their coverage may also provide compensation for any necessary expenses incurred during the period of restoration that it would not otherwise have been subjected to if there hadn’t been a physical loss caused by a covered peril. Specifically, these losses refer to the costs incurred when taking reasonable steps to minimize further losses, which include costs related to:

  • Avoiding or minimizing the suspension of business operations at the regular premises, including relocation expenses and the cost of equipping and operating a temporary location; and
  • Minimizing the suspension of a business if it cannot continue operations.

When it comes to the COVID-19 pandemic, covered losses could include everything from additional security to protect business property and advertising costs to help resume operations, to disinfectant efforts to keep premises safe and clean and the costs associated with enabling employees to work from home. It’s important to note, however, that insurers usually only offer compensation for these expenses up to the amount of the initial claim. Essentially, insurers who provide business interruption insurance will not usually compensate policyholders for any extra expenses that add up to equal more than the original claim for lost business income.

Call Today to Schedule a Consultation with a Florida Business Interruption Lawyer

If you own a business and have suffered financial losses as a result of the COVID-19 pandemic, you could be entitled to compensation for your loss of income, including any expenses incurred while attempting to restore your business’s earnings. To speak with a business interruption lawyer about what your own business interruption insurance policy covers, please contact Boone & Davis by calling our office at 954-566-9919 or by sending us an online message and setting up a free consultation.




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