Tennessee Business Interruption Attorneys
Representing business owners throughout the Southeast and Midwest
When calamity strikes, it is critical to a business’ viability that it get back in operation as soon as possible. Time is money. Delay in getting the business operating again after property is damaged, technology fails, inventory is lost, or as a result of any catastrophic loss– means lost profits. When business is suspended, overhead costs such as insurance premiums, lease payments, staff, pension funding, and other employer obligations still need to be met. Business interruption means more than just lost sales revenue, including lost market share and lost opportunities.
The Tennessee-based business interruption insurance claim lawyers at McWherter Scott & Bobbitt represent businesses throughout the Southeast. We work to get our clients prompt and accurate funding so they can get their company up and running as soon as possible. The Firm has the experience and skills to help clients determine the full extent of their business loss. As an example, in a recent case, McWherter Scott & Bobbitt obtained a settlement of over $3.9 million for lost business income and extra expenses as a result of a fire for a West Tennessee business.
What are common business interruption claims?
Our firm works with a broad range of businesses and business experts. When damage to your property or business assets occurs, as a result of any covered loss, our firm is adept at preparing, analyzing, and presenting your claim appropriately, honestly, and accurately. Some of the common business interruption issues our Tennessee business interruption attorneys address include:
- Improper Allocation of Continuing v. Non-Continuing Expense. One of the common issues is properly allocating continuing v. non-continuing expenses, a task that is often massacred by the forensic accountants hired by the insurance companies. Precision and accuracy are a must, and mistakes often times result in severe miscalculations of insured losses.
- Salaries and wages. Many policies cover the costs associated with continued payroll obligations, even for the entire period of restoration or for a portion of it.
- Period of Restoration. Another common dispute involves the appropriate period of restoration, and when it ends. Generally, and subject to the specific requirements of the policy in question, the period of restoration defines the parameters on the period for which an insured is entitled to business interruption benefits. When an insurer breaches its obligation to pay for property damage promptly, resulting in a longer period of business interruption, the law in many states provides a remedy.
- Calculation of loss of income. Of course, an accurate calculation of lost revenues is important to any business interruption claim. New businesses are particularly susceptible to improper accounting and economic methodologies designed to minimize insurance benefits. We are experienced in identifying incorrect protocols, and we have relationships with various financial professionals to assist with accurately preparing loss schedules.
- Temporary location costs and other extra expenses. Most businesses rely on brick and motor locations to do business. Retail stores, sawmills, manufacturing facilities, apartments, warehouses, and others all require the appropriate space and structure to serve their purpose and continue generating revenue for their owners. Gaining advances for temporary locations to perform business can be the difference in a small bump in the road that a business can overcome versus a total wipeout of the business. If it takes months or years to get back to work, customers, tenants, vendors, suppliers, and more may be permanently lost.
How can fires lead to a business interruption insurance claim?
When your commercial, office, or industrial structure is damaged in a fire, the business suffers in more ways than one. At the very moment when money becomes more important due to the need to make quick repairs, the business may also be incapable of generating revenues due to the catastrophic loss. With inventory, office space, and/or equipment damaged, it becomes critical to quickly move forward with repairs and get the business back up and running. When an insurance company’s actions prohibit you from doing so, that’s where we come in. At McWherter Scott & Bobbitt, we are skilled identifying issues and assisting our insureds recover the amounts to which they are rightfully entitled.