3 Causes of Costly Business Interruption Claims

5/6/2020 (Permalink)

Water damage in Berthoud, CO

Three Preventable Causes of High Interruption Claims

Large water damage caused by flooding can grind business to a halt. An interruption insurance policy is helpful for paying ongoing expenses and making up for lost revenue during restoration. These costs can add up, particularly during a prolonged closure. Learn more about three preventable causes of high interruption claims.

1. Delayed Mitigation
Many interruption insurance policies have a 72-hour waiting period between when a loss occurs and the start of coverage. This is also the most critical period of time for fixing underlying problems, such as a broken pipe, and mitigating damage. A cleanup service should quickly arrive on-site, assess the situation, and take measures to limit primary and secondary damage.
2. Incomplete Cleanup
Several phases of cleaning should take place after flooding in a commercial building. Any portion of the structure exposed to contaminated water must be pumped out, cleaned, and disinfected. Porous building materials such as carpet and drywall may need to be torn out and replaced. Failure to perform these procedures quickly and in the right order may increase the risk of mold or structural issues that result in re-contamination and necessitate prolonged or repeated closure.
3. Overlapping Services
Relying on multiple service providers can make scheduling mitigation, cleanup, and restoration more difficult. Multiple estimates can also complicate the process of making and settling a property insurance claim. Without clear lines of communication, procedures may be repeated or omitted, resulting in a more expensive, incomplete or slow restoration. A one-stop shop can provide a single estimate for a complete and efficient cleanup and rebuild.
The degree of damage, duration of closure and continued expenses will determine an interruption claim amount. While it may not be possible to prevent flooding or other damage at a business in Berthoud, CO, relying on skilled professionals from a single restoration service can allow for a lower interruption claim.