Reopening your business after a fire, flood or other property damage is an important step toward recovery. However, customers may not return right away. Some may have found other businesses during the closure. Others may not know you have reopened.
As a result, your business could continue losing income even after repairs are complete. For Wisconsin business owners, the question is whether their insurance covers these ongoing losses.
Does insurance cover losses after reopening?
Business interruption insurance often helps replace lost income when covered property damage forces a business to close or reduce operations. It may also cover certain ongoing expenses, such as rent and payroll.
However, coverage does not always end the day your business reopens.
Some policies include extended business income coverage. This provision may cover lost income while a business works to regain customers after reopening.
For example, a restaurant may reopen after fire repairs but serve fewer customers than before. Extended coverage could help replace some of that lost income.
Still, coverage depends on the policy’s terms. Insurers often limit how long these benefits last.
How can you prove ongoing losses?
To support a claim, you need to show how the property damage affected your income after reopening. Your insurance company may compare your current earnings with what your business would likely have earned without the damage.
Useful records include:
- Sales reports from before and after the damage
- Tax returns and past financial statements
- Customer orders and canceled contracts
- Records of reopening dates and operating hours
- Receipts for costs related to restoring business operations
These records can help separate losses caused by the damage from losses caused by other factors, such as seasonal demand.
If your insurer delays payment, Wisconsin sets rules for timely insurance claim payments. In certain cases, insurers must pay interest on overdue claims.
How can you protect your recovery?
Even after reopening, your business may need time to regain its previous income. Therefore, review your insurance policy before assuming that your claim ends when repairs finish.
Pay close attention to coverage limits, deadlines and any extended business income provisions. Continue keeping financial records while your business recovers.
If your insurer disputes your losses or denies further payment, a Wisconsin insurance attorney can review your policy and the reasons for the decision. Legal guidance may help you understand your coverage and whether you have grounds to challenge the insurer’s position.