A serious commercial property loss can create several insurance issues at the same time.
There is the physical damage to the building, roof, equipment, inventory, or tenant space. There may also be lost business income, extra expenses incurred to keep operating, delays in reopening, and disputes over what the insurance company will pay while repairs are underway.
Commercial claims can also involve more complicated policies, larger estimates, multiple consultants, extensive document requests, and competing opinions about the scope and value of the loss.
We represent property owners, businesses, associations, and landlords in commercial property insurance disputes. We review both the physical damage and the financial effects of the loss so the claim is evaluated as a whole.
Common Issues in Commercial Property Claims
Extensive document requests. Commercial claims often require financial records, leases, repair estimates, inventories, invoices, contracts, and other documentation. We help organize what is required, respond to appropriate requests, and maintain a clear record of what has already been provided.
Business income disputes. Calculating lost income is rarely as simple as comparing revenue before and after a loss. The analysis may involve historical performance, seasonality, projected growth, continuing expenses, saved expenses, and the amount of time reasonably required to restore operations.
Disagreements over the repair scope. Large commercial losses may involve adjusters, engineers, contractors, consultants, and other professionals with different opinions about what must be repaired or replaced. Even relatively small differences in scope can significantly affect a large claim.
Landlord and tenant issues. A loss involving leased property can raise questions about who is responsible for the building, improvements, equipment, inventory, and other property. The lease and the applicable insurance policies often need to be reviewed together.
Interim funding. Repairs and operating expenses do not necessarily stop while the insurance company completes its investigation. In appropriate claims, we evaluate whether additional or advance payments should be requested while the final amount of the loss is still being determined.
How We Handle a Commercial Property Claim
We begin by understanding both the property damage and the effect the loss has had on the business or property operations.
For the physical damage, that may include reviewing contractor estimates, engineering reports, roofing assessments, photographs, inventories, equipment evaluations, code requirements, and the insurance company’s estimates and inspection findings.
For business income and extra expense claims, we review the financial records needed to document how the loss affected operations. Depending on the size and complexity of the claim, that may involve working with accountants or other financial professionals.
We also identify the policy provisions that may affect coverage, including business income, extra expense, period of restoration, ordinance or law, equipment, inventory, tenant improvements, and other applicable coverages.
Throughout the claim, our goal is to keep the issues organized, document the loss properly, and deal directly with the insurance company so owners and management can remain focused on the property and the business.
If the insurance company disputes coverage, delays payment, or refuses to pay the supported amount of the loss, we evaluate the appropriate next step, including negotiation, appraisal where available and appropriate, mediation, or litigation.