Did You Experience a Loss in Business?
If you are a business owner and have experienced a covered cause of loss anything related to water, fire, windstorm, vandalism, vehicle into structure, burst pipe, etc. it can be difficult to know where to start. You may have to close down your business for a period of time and may not know or understand the steps to getting full coverage. Contact Direct Public Adjusters we can help.
Our team at Direct Public Adjusters is made up of experienced loss adjusters, mediators, and appraisers who have been managing all types of insurance claims for decades. We can help you understand your rights and decide what the best plan of action for you is.
Schedule a Free Consultation
Contact us for a FREE Claim Assessment
What Are Some Common Causes of Business Interruption?
Business interruption insurance covers the cost of lost profits caused by a covered event; an unfortunate but all too common occurrence for businesses of all sizes. It is often followed by emotional trauma, loss of income, foundational damage, and much more. During a time like this, fighting your insurance provider to get the compensation you deserve should be the last thing on your list of priorities. That’s why you need to work with public adjuster services.Some of the most common causes of business interruption include:
- Natural disasters (floods, hurricanes, earthquakes, windstorms, hail, or gales)
- Theft, vandalism, or malicious mischief
- Fire and lighting damages
- Losses incurred due to explosions
- Accidents (e.g., broken equipment or structural damage)
- Any vehicle damage
Besides these, business interruption insurance also covers the following:
- Loss of business income (the amount of net profit you lost).
- Extra expense incurred (any amount you spent out of your own pocket to get your business back on track).
- Equipment breakdown or machine failure.
- Business personal property (such as furniture or fixtures that are part of your business’s assets).
- Loss of use
How Will Direct Public Adjusters Submit and Manage My Business Interruption Claim?
It is normal to feel nervous when you are dealing with a loss in business. After all, it is what your livelihood depends on. And that’s exactly why you need to work with independent loss adjusters who have your best interest.
Direct Public Adjusters will make sure that any claim is handled quickly and efficiently so that you can focus on what matters most—getting your business back up!
When you work with us, we will:
- Gather a detailed list of damaged inventory for you.
- Put together the estimates for all covered damages, including fixed costs, such as operating expenses and similar incurred costs.
- Submit your claim to the insurance company on your behalf.
- Work with the insurance company to get your claim settled as quickly as possible.
- Review and adjust your documentation to make sure it is complete and accurate.
- Handle negotiations with the insurance adjuster.
- Manage the entire process of helping you get paid back the right compensation.
- Apply forensic accountants/specialists when necessary.
How Will I Get the Most Compensation for My Business Interruption Claim?
If you have been affected by a business interruption, the insurance company will likely want to know what happened to your business. The more information you can provide, the better compensation you can secure.
The first thing to do is make sure that you are aware of when and how your business was affected. Did a fire break out at your property? Did an earthquake cause damage or destroy inventory? Was a theft or robbery committed on your property? These are all examples of circumstances that could cause your business interruption claim to be denied.
Next, gather as much evidence as possible about the circumstances surrounding your business interruption claim. Take pictures of any damages, write down all of the details about the incident—and anything else that might help demonstrate just how bad things were—and keep receipts for any expenses related to recovery efforts.
Sounds stressful and time-consuming? You can always work with Direct Public Adjusters. We will work with you every step of the way from beginning to end and only get paid when you do. You have only to gain!
Frequently Asked Questions: Business Interruption Insurance Claims
What does business interruption insurance actually cover?
Business interruption coverage replaces lost income when a covered physical loss—fire, water damage, storm damage—forces your business to slow down or close. It typically covers net income you would have earned, ongoing fixed expenses like rent and payroll, and sometimes the cost of operating from a temporary location. What it does not cover is any income loss that isn't tied to a covered physical damage event. The trigger is the physical loss itself, and documenting that connection is the foundation of every BI claim.
How do I calculate how much income I lost for a business interruption claim?
Insurers calculate BI losses using your historical financials—typically the 12 months prior to the loss—to project what you would have earned during the interruption period. This sounds straightforward but rarely is. Seasonal fluctuations, growth trends, contractual commitments, and one-time revenue events all affect the number. The insurer's calculation will almost always be conservative. Coming in with your own well-documented projection, supported by financial records, contracts, and an accountant's analysis, is the difference between a fair settlement and a significant shortfall.
My business interruption claim was denied because there was no "direct physical loss." What does that mean?
This is the most heavily litigated issue in business interruption coverage. Insurers use "direct physical loss" as a threshold requirement—arguing that if the building wasn't structurally damaged, there's no BI coverage. Courts have ruled both ways on this. Whether your specific situation meets the threshold depends entirely on your policy language and the jurisdiction. If you've received a denial on these grounds, the denial itself should be reviewed by someone who knows how to read commercial policy language, because it's not always the last word.
How long does business interruption coverage last?
Most BI policies have a "period of restoration" that defines the coverage window. It typically begins on the date of the physical loss and ends when the property is—or reasonably should be—repaired or replaced. That last part is important: if repairs are delayed due to contractor availability, permitting, or supply chain issues, you may still be within your coverage period even if considerable time has passed. Some policies also include an extended period of indemnity that covers reduced income during the ramp-up after reopening—a real and often unclaimed piece of coverage.
My restaurant had a fire and lost months of revenue. Can I claim for that?
Yes, and restaurants are one of the property types where BI claims matter most. Between payroll obligations, perishable inventory loss, vendor contract implications, and the time it takes to rebuild a customer base after reopening, the financial impact goes well beyond the physical repair costs. All of these elements can and should be part of a well-constructed claim. The insurer will present a number based on average revenue—your job, with the right representation, is to make sure every documented loss is on the table.
Can I claim business interruption if my business operated at reduced capacity due to property damage?
Yes. Business interruption coverage isn't limited to complete shutdowns. If damage to your property forced you to operate with fewer tables, less floor space, reduced inventory capacity, or diminished service capabilities, the resulting income reduction is part of the claim. This is called a partial suspension of operations, and it's frequently overlooked in initial claims. The key is demonstrating the direct link between the physical damage and the revenue reduction through financial records and operational documentation.
Does business interruption insurance cover losses from a government-ordered closure?
Only in specific circumstances. Generally, BI policies require a covered physical loss to trigger coverage—a government shutdown order alone, without accompanying property damage, typically does not meet that threshold under standard policy language. However, some policies include civil authority coverage, which can apply when a government order restricts access to nearby property due to damage in the surrounding area. Whether civil authority coverage applies to your situation is a policy-specific question and depends on the exact wording and circumstances.
If your business has been disrupted by fire, water, or storm damage anywhere in NYC, New Jersey, Connecticut, or Pennsylvania—contact Direct Public Adjusters for a free claim review. We handle the insurance fight so you can focus on getting back open.