5 Ways to Prepare Yourself Now on how to handle Business insurance(BOPs) claims in a Tornado.
Amid the blackouts and what’s left from the storm debris, I pray, the citizens of Jefferson City, MO don't fall victim of not having the Loss of Business income(Rent)or Extra expense on their current policies. While you are out of business, you may need to pay staff or even pay expenses for temporary relocation.
Loss of business income: the Net Income and Continuing Normal Operating Expenses including payroll.
Extra Expense: necessary expenses you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss or damage to property caused by or resulting from a Covered Cause of Loss.
1) Document your damages. Fastest way is Video and pictures. (You should start at the beginning of your policy and get in the habit of doing this as your business grows to insure nothing is missed)
2) Gather your expenses to operate that you are obligated to pay (examples: any loans that dont have hardship coverage.. displacement.. specialist to examine) your expenses and compile them on a list (doesn't have to be fancy...you can use a napkin. The idea is to organize and take the time to gather those expenses).
3) Talk to your LOCAL AGENT FIRST(if you don't have one we gotcha!) and speak on how to get money right away that can help with expenses while your business is out of order. Tell the agent about the damages that you have and about your list of expenses.
4) File the claim! You can choose how you want your monthly Indemnity paid (remember you are only allotted the dollar amount you chose to be covered for)
You will be paid in increments of 1/3(you can choose less) of the amount you chose for your coverage in your loss of income.
Ex$100,000 is the coverage amount. You get $33,333 ($100K*.33)
Standard time is 72 hours before you get your money. You do not have to pay a deductible to get this money. (If you have loss of income and loss of rent added)
5) Find the right people to help you become whole and back in business! The Extra Expense includes any amount paid to avoid or minimize the suspension of your business operations at your premises or at a temporary location. This includes any expenses to repair, replace any property or expenses involving research, replacement or restoring the lost information on damaged papers or records to the extent that it reduces the amount of loss paid under Business Income.
Bonus: Don't rush to close your policy, you want to make sure you are whole again. Which is what insurance protection is for.
Note:After you close your claim, don't hesitate to call your insurance adjuster that was assigned to you, if you find related damages at a later date.
See Fox News Video below:Tornado Damages in Jefferson, MO