Most business owners buy insurance that covers the eventuality of some event happening that prevents the business to operate for either a short time or permanently. Examples include fire, earthquake, floods, etc. Unfortunately, when such a disaster occurs there usually follows an attempt by the insurance company to pay as little as possible. While this is somewhat expected, the vehemence and stubbornness of the insurance adjustors to revise their findings can be downright shocking. Most business owners give up and accept the insurance payment as full compensation. Others choose to hire a law firm to deal with the insurance company.
In simple terms an insurance claim for business interruption is an attempt by the insurance company to replace “what would have been” but for the disaster. There is a period for which business is interrupted (usually limited in the contract to a number of months). For that period the insurance company is theoretically to replace the profits that would have been earned. If there is a disagreement between the insured and the insurance company it is usually in how that lost profit number is calculated.
Before a lawyer is hired, consideration should be given to retaining a forensic accountant who has experience in such matters … (read complete article)