A broken pipe may not always cause enough damage to justify a business interruption claim for your business in Tulsa, OK. Most insurance policies require you to meet certain criteria before you receive coverage benefits.
1. Physical Property Damage
This type of insurance is generally an addition to your property insurance, so you typically need to have some physical damage. The damage must occur at the site listed on your policy. In other words, you often cannot file a claim if a neighboring business sustained damage that prevents you from getting to your property.
2. Covered Incidents
Certain events, like fires, will be covered under your policy, allowing you to receive benefits. However, events like flooding are often not covered, so you can not file a claim for these.
3. Necessary Interruptions
If you sustain mild damage to your property but decide it is the best time to shut down for remodeling, this will be considered an unnecessary interruption. Unnecessary interruptions are not covered, but any necessary shutdowns are.
4. Complete Suspension of Business
If physical damage has occurred to your property and has impacted your business, you will likely not receive benefits because your business was not completely suspended. You will likely come across this if you have business interruption insurance. This is because it is rare that a business will need to suspend its operation completely. However, if you sustain damage and continue to operate your business, your property insurance will likely cover repairs as long as they are not related to flooding.
Business interruption insurance is designed to protect you during a complete shutdown. While events such as flooding and large water damage generally do not meet the criteria for a business interruption claim, this does not mean that it is completely hopeless. As long as it is a covered incident, your property insurance will likely cover any repairs that need to be conducted by qualified professionals. If you must completely shut down your business, your interruption insurance will cover your cost of income.