Texas Business Interruption Claim Lawyer

Understanding Business Interruption Claims in Texas

What is business interruption insurance? Business interruption insurance is a type of insurance that protects businesses against the consequences of income lost after a disaster. If your business suffers a disaster, you can seek a policy payout to cover many facets of your operation that require cash, such as payroll and purchases.

The disasters and events that business interruption insurance protects against include theft, natural disasters, and other incidents that have negatively impacted your business operations.

If severe enough, these occurrences can lead to a business shutdown that can put an end to your business. They can also cause payroll problems that wreak havoc on your employees and lead to strained business relationships with other businesses. But with a timely policy payout, your company can avert a closure and get back to work.

Common Types of Business Insurance Coverage

When you research Texas Business Interruption Coverage, you will see various options for coverage. Which one is best for your business depends on your circumstances.

Typically, you will be able to choose from the following four types of coverage:

• Business income coverage: Business income coverage protects your business by providing funds to cover your company's operating expenses and payroll. The size of the payout will be based on your company's past history of sales and expenses as demonstrated in your financial records;
• Extra expense coverage: Extra expenses are those costs that are outside of the normal monthly expenses of your business. They are typically used to get a business back on its feet;
• Contingent business interruption coverage: This form of coverage covers lost income due to a problem at a customer's or supplier's location, such as a fire or natural disaster;
• Civil authority coverage: Civil authority coverage pays for loss of income and extra expenses when government action interferes with your company's ability to conduct business.

The type of business interruption insurance coverage that is right for you will depend on your needs. Our experienced business interruption insurance lawyers can help you make the right choice.

Civil Authority Coverage for Business Interruption

Civil authority coverage for business interruption covers situations relating to government orders and mandates that interrupt business operations. Orders and mandates may come from federal, state, and local governmental bodies and can have a devastating effect on a company's bottom line.

As you know, COVID-19 caused many governments at all levels to issue orders that led to the closure or downscaling of many businesses across the state and country. Those companies that had business interruption insurance were able to file claims to recover valuable compensation for their losses.

Keep in mind that many civil authority policies cover losses only when the lost income is directly caused by some type of physical loss, such as damage to goods and property. With other types of losses, the civil authority clause in these policies will not be triggered.

Common Causes of Business Interruption in Texas

Numerous events can lead to a business interruption.

Some of the more common causes include:

• Natural disasters: Texas regularly experiences all manner of natural disasters, including hurricanes, floods, and tornadoes, which can lead to business closures;
• Fire and water damage: Fire and water damage are quite common in business and can occur at any time, whereas natural disasters are often seasonal;
• Power outages: Power outages are becoming more frequent. A loss of power can send businesses into a financial tailspin;
• Civil unrest: Texas has been experiencing an uptick in civil upheaval, from race issues to gun control. Riots and protests that interrupt business are the usual results;
• Oil and other catastrophic spills: Catastrophic spills are capable of grinding a company's operations to a halt.

Regarding the final point, many business owners believe they have adequate coverage in this area when they do not.

Insurance Claim Denied? Common Bad-Faith Tactics of Insurance Companies

Having business interruption insurance is indispensable in the event of a disaster. However, because they are for-profit businesses, insurance companies often make it difficult for policyholders to get the compensation they deserve. Unfortunately, this is to be expected.

With that being said, an insurance company's actions can go too far, to the point where it is considered to be acting in bad faith.

If you experience any of the following with your insurance company, it may be acting in bad faith:

• Delaying valid claims without giving reasons or by giving invalid reasons;
• Offering a policy payout that is far below what the business deserves, according to the language of the insurance policy and the circumstances of the loss;
• Saddling the claimant with unreasonable demands that only seek to delay or discourage the claimant from receiving a policy payout;
• Manipulating the language in the business interruption policy to deny or reduce a claimant's payout;
• Misrepresenting the extent of coverage offered in a policy or misrepresenting policy terms to pay less;
• Communicating a lowball settlement offer without having performed an investigation;
• Failing to communicate with the claimant in a reasonable and timely manner.

If you have experienced behavior of this nature, you are likely the victim of bad faith insurance and need representation. Omar Ochoa Law Firm can help you hold your insurance company accountable.

How Can Our Business Interruption Lawyers Help You?

The claims process for business interruption insurance is often complex and involved. And insurance companies fight hard to pay less. So business owners and leaders need a seasoned attorney to get maximum results.

When you choose our team to handle your business interruption insurance claims, we handle everything, including:

• Investigating and assessing the losses you have experienced;
• Gathering all required claims paperwork;
• Analyzing your communications with your insurance company to identify acts of bad faith insurance;
• Aggressively negotiating with insurance companies for a proper payout;
• Litigating your claim if negotiations fail;
• Keeping you abreast of the progress of your business interruption insurance claim.

The Omar Ochoa Law firm is a leading firm that has helped numerous businesses receive the claims payouts they needed and deserved. Call our office today and set up a free consultation to learn how we can help.

How Much Do Our Legal Services Cost?

At the Omar Ochoa Law Firm, we operate on a contingency fee basis and do not require a fee payment unless we win your case. We also front all of the costs associated with your claim. This means no money is necessary upfront to get started on your claim.