When filing a business interruption insurance claim, there arise issues regarding the period of restoration business income. If your place of business in New Orleans has been destroyed by a hurricane you may submit a claim for business interruption or loss of business income among other claims. The question may arise as to what the reasonable period of restoration is—the amount of time that you sustained an actual loss of business income.
How is this period of restoration measured? If you rent your office space, does the time it takes your landlord to repair the entire office building determine your specific period of restoration? It could be time to take a closer look at your commercial property insurance policy, specifically, the language regarding business interruption.
Like most insurance issues, you can find yourself frustrated when your insurer appears to have little to no concern regarding how the hurricane-affected you and your business, particularly your loss of business income. If you find yourself in this position, it is time to contact the highly experienced legal team at Gulf Coast Insurance Attorneys.
We deal with issues just like this on a regular basis and can help you navigate your way through insurance complexities in the best way possible. Our goal is to ensure you get the best settlement possible, in every way, whether for your home or your business.
Language in Your Business Policy Regarding Period of Restoration Business Income
Standard business insurance policy language regarding the period of restoration might say something like, “We will pay for the actual loss of business income sustained due to the necessary suspension of your operations during the period of restoration.” The suspension in question must be caused by direct physical loss or damage to the property as described elsewhere in your policy.
The restoration period is generally defined as a time period that starts three days after your place of business has experienced damage from something like a hurricane or other natural disaster. This is the norm when you have Business Income Coverage. If you have Extra Expense Coverage, the restoration period may begin immediately following the time when your place of business experiences damage or other direct physical loss. The period of restoration generally ends at the time the property is expected to be replaced, rebuilt, or repaired, or at the date when you resume your business in a new location.
Questions Surrounding the Period of Restoration
Issues arise regarding the period of restoration in Louisiana business interruption insurance claims because this period of restoration is an often estimated, sometimes even hypothetical amount of time it will take to return your business property to the point you are able to resume your business at full capacity. There are many factors associated with determining the period of restoration.
One of these factors involves other claims that are being made simultaneously, along with your business interruption claim. Another factor involves your own cooperation, as well as how quickly contractors, builders, and landlords can reasonably repair the property. The period of restoration has seen the inside of courtrooms fairly frequently throughout history. When this period of restoration begins is rarely in question. The date it ends, however, is another matter.
Any claim for business interruption can end up in litigation when it comes to the period of restoration, however, issues regarding the period of restoration are more common when the insured is one of many tenants in a large commercial office space. If the particular location of that office building is an integral part of the insured’s success, making relocation an unworkable alternative, issues may arise. While some courts have held that the period of restoration ends at a time when the premises should be repaired or rebuilt. Unfortunately, should is a very subjective word.
Some policies say the period of restoration ends on the date when the property should be repaired, rebuilt, or replaced “with reasonable speed and similar quality.” What does “reasonable speed” mean to you? To the insurer? To the contractor? To the owner of the building? You can see where issues might arise. Suppose you allege you are entitled to additional lost income for the time actually required to rebuild the entire office complex?
How much will it hurt your business if your office is rebuilt, but there is constant construction all around your office space? Courts may link the period of restoration to the time it takes to resume your business—not tied to the repair or rebuilding of the actual physical structure. As you can see, there are many variables related to the period of restoration. Because of this, it can be extremely helpful to speak to an experienced, knowledgeable attorney from Gulf Coast Insurance Attorneys.
Gulf Coast Insurance Attorneys, Business Insurance Dispute Attorneys Can Help
Since the period of restoration clause employs a rather hypothetical time frame, if your insurance company is being totally unreasonable regarding that time frame, you may need a solid legal professional from Gulf Coast Insurance Attorneys to fight for your rights in this matter. We fully understand the complexities, as well as the law surrounding the issue. We will always fight for you and for what is best for your future. Contact Gulf Coast Insurance Attorneys, today!