Business Interruption Claims

In Florida, what do property insurance claims and disputes encompass?

Property insurance claims and disputes revolve around disagreements between policyholders and insurance companies regarding coverage, the amount of compensation, or the insurer’s duty to defend. Such disputes often arise when policyholders believe their insurers have wrongfully denied or underpaid a claim or when insurers argue that policy exclusions or conditions apply. The crux of these disagreements often stems from interpreting policy language or assessing damages.

For example, disputes may arise in the aftermath of hurricanes or other natural disasters, where policyholders seek compensation for damages caused by wind, rain, or flooding. These disputes may also encompass disagreements over the value of damaged or destroyed property, leading to lengthy negotiations or even litigation. In addition, in some cases, policyholders may allege that insurance companies acted in bad faith by denying, delaying, or undervaluing claims without a legitimate basis. Therefore, policyholders and insurers must understand their rights and obligations under Florida law to navigate these complex disputes effectively.

Need help to handle a claim or dispute against your policyholder? Schedule your consultation today with a top property insurance claims attorney.

Which Florida laws, rules, and regulations apply to property insurance claims and disputes?

Florida property insurance claims and disputes follow a combination of state statutes, regulations, and case law. The Florida Insurance Code contains various provisions for insurance contracts, insurers, and policyholders, including Chapter 627, which explicitly addresses property insurance.

Florida Statute §627.701 regulates handling claims involving natural disasters, such as hurricanes and sinkholes. Flood insurance claims, however, flow through the National Flood Insurance Program under the Federal Emergency Management Agency (FEMA).

Furthermore, the Florida Department of Financial Services and the Florida Office of Insurance Regulation regulate the insurance industry and enforce state insurance laws. As a result, they issue rules and guidance that impact property insurance claims and disputes. Moreover, Florida courts play a significant role in interpreting insurance laws and policy language, creating a body of case law that shapes handling property insurance claims and disputes.

Understanding the interplay between Florida statutes, regulations, and case law is essential for effectively navigating state property insurance claims and disputes.

How do business interruption claims connect to property insurance disputes?

These claims, which cover lost income and operating expenses during an unforeseen event, are often essential for a business’s survival. However, the complexities surrounding business interruption insurance claims can lead to disputes between policyholders and insurance companies.

Firstly, the policy language and terms often require expert interpretation. More often than not, policyholders and insurers butt heads over their respective interpretation of policy coverage of “physical loss or damage.”

Additionally, the calculations related to the claim amount can be contentious. Policyholders and insurance companies might disagree on the calculation methods, duration of the business interruption, and the extent of the loss.

For example, suppose a restaurant in Florida suffers hurricane-induced flooding, forcing it to close for two months. The restaurant owner files a business interruption insurance claim. However, the insurance company argues that the policy does not cover flood damage, while the owner believes the policy does cover such losses. This dispute can lead to litigation and a lengthy resolution process.

When a set of facts is appropriate for facilitating property insurance claims or disputes, there are many paths a client may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation or another form of specialized advocacy, please contact our office to set up your initial consultation.

What are the prerequisites for policyholders to file business interruption claims?

Policyholders must establish the following:

• Policy coverage: The policy must include business interruption insurance as part of its coverage. Policyholders should carefully review their policy documents to ensure they have adequate coverage.
• Physical loss or damage: Direct physical loss or damage to the insured property must occur.
• Causation: The loss or damage must be due to a covered peril, such as a hurricane or fire. Policyholders must prove that the covered event directly caused the damage.
• Mitigation: Policyholders must mitigate losses and take reasonable steps to resume operations immediately.
• Documentation: Policyholders must maintain accurate records of their business’s income and expenses before and after the loss. This documentation is crucial for calculating the claim amount and supporting the claim.

How can legal counsel facilitate business interruption claims, and what are the associated strategic benefits?

An effective attorney often considers and resolves the following for their clients:

• Understanding policy language: Counsel must have a thorough understanding of the insurance policy language and any relevant Florida and federal cases, statutes, codes, rules of procedure, regulations, and secondary sources.
• Quantifying losses: Assist policyholders in accurately calculating losses, accounting for direct and indirect costs, and considering the restoration period.
• Gathering evidence: Compile and organize supporting documentation, such as financial records, contracts, and photographs, to substantiate the claim.
• Mitigating losses: Advise clients on their duty to mitigate losses and help them take reasonable steps to resume operations as quickly as possible.
• Navigating negotiations: Represent policyholders negotiating with insurance companies to reach a fair and timely settlement.

As a result, policyholders strategically benefit in the following ways:

• Expert guidance: Policyholders benefit from counsel’s expertise in interpreting complex insurance policy language and navigating the claims process.
• Maximized compensation: Counsel can help ensure policyholders receive the maximum compensation they are entitled to under their policy.
• Reduced stress: Working with counsel can reduce the stress and burden on policyholders as they focus on rebuilding their businesses.
• Protection of rights: Counsel can help protect policyholders’ rights during disputes or litigation.

Please contact our office to set up your initial consultation to see what forms of legal protection and advocacy may be available for your unique situation.

Frequently Asked Questions

1. What types of events are typically covered by business interruption insurance?

Business interruption insurance generally covers events that cause direct physical damage to the insured property, such as fires, hurricanes, and vandalism. Therefore, reviewing the specific policy language is essential to determine which events are covered.

2. How is the period of restoration determined in a business interruption insurance claim?

The restoration period is the time needed to repair, rebuild, or replace the damaged property. It begins when the physical loss or damage occurs and ends when the property restores to its pre-loss condition or reaches the policy’s coverage limit.

3. Are there any exclusions to business interruption insurance coverage?

Yes, exclusions vary depending on the specific policy. Standard exclusions include flood damage, earthquakes, and losses due to viruses or bacteria.

4. How can I ensure that I have adequate business interruption insurance coverage for my business?

To ensure adequate coverage, work with a knowledgeable insurance agent or broker and conduct a thorough risk assessment of your business. Then, review your policy annually and adjust your coverage limits as needed.

5. Can I file a business interruption insurance claim if my business was indirectly affected by a covered event, such as a supplier’s property being damaged?

The availability of this claim depends on your policy. Some policies include contingent business interruption coverage, which covers losses resulting from disruptions to a supplier’s or customer’s operations. Review your policy language to determine if you have this type of coverage.

Have more questions about property insurance claim recovery?

Crucially, this overview of business interruption claims does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.