Commercial property claims: The restoration timeline
Managing business interruption through physical recovery
When a disaster strikes a business, the focus is naturally on the immediate physical damage. However, for most commercial owners, the secondary loss is just as painful: The revenue that stops the moment your doors close. Whether you operate a retail shop or manage a multi-unit building, your ability to recover financially depends on how quickly you can return to normal operations.
Understanding the period of indemnity
If your policy includes loss of income insurance, you will likely encounter a term called the period of indemnity. This is the specific length of time—typically between 12 and 36 months—that your insurer agrees to cover your financial losses.
It is a common mistake to assume a year is plenty of time to get back on track. In reality, being back to normal operations does not mean your business is back to where it was before the disaster. You may have missed a critical sales cycle, lost valuable staff, or seen customers migrate to competitors during the shutdown. Your coverage should last long enough to ensure these lingering expenses are covered.
The link between physical restoration and financial recovery
While Grenier Public Adjusters focuses on the physical assessment and management of your property claim, we recognize that the period of restoration is the foundation of your business interruption claim.
Note on business interruption
A commercial business interruption claim depends on financial forecasts, tax returns, and profit-and-loss statements. While forensic accountants handle these projections, those numbers are irrelevant if the insurance carrier underestimates the time needed for physical repairs. We establish the true physical restoration timeline to ensure your financial claim has a solid foundation.
Why an independent physical assessment matters
Neither you nor your insurance carrier has a crystal ball to predict the future, but reimbursement for lost income depends on accurate forecasting. Insurers often use low historical averages to determine your loss, but these fail to account for:
- Market trends: If the demand for your services was increasing before the loss, your indemnity should reflect that growth.
- New products: Recent additions to your product line or service offerings may not yet be reflected in last year’s tax returns.
- New accounts: Landing a major new customer just before a disaster significantly changes your income projections.
Securing your business’s future
Statistics show that 40% of businesses never reopen after a disaster, and of those that do, 25% fail within a year. This is often because the physical claim was settled too quickly, leaving the owner without enough capital to survive the long restoration period.
By hiring a public adjuster, you ensure that an expert who works only for you is establishing the real cost and timeline of your loss. We focus on the complexities of the physical claim so you can focus on rebuilding your business.
If you have experienced a disaster, make sure your insurance covers everything it was intended to. Call Grenier Public Adjusters anytime at (774) 239-6822 or start your assessment through our contact form.