Maximizing Business Interruption Claims for Commercial Business Clients in Michigan, Ohio and around the Country
Business interruption claim success starts with one move—call Fabian Sklar King & Liss before you speak to the insurer.
Flooding can halt both transportation and business operations, but robust insurance helps companies recover lost income. When a fire, flood, or storm forces a Michigan company to shut down, the lost revenue and mounting extra expenses can be devastating. Business-interruption (“business-income”) insurance is meant to cover those losses and return the company to the financial position it would have enjoyed but for the disaster. Yet securing a full payout is complex. This guide explains how to document losses, avoid policy pitfalls, act quickly, and leverage Fabian Sklar King & Liss’s expertise to maximize any claim.
Documenting Complex Financial Losses Effectively
Gather Financial Records and Projections. Pull profit-and-loss statements, prior-year financials, sales forecasts, and budgets. Your goal is to show “what would have been earned” versus actual revenue after the loss. For seasonal or high-growth businesses, use several years of data to justify projections.
Document Extra Expenses. Track every cost incurred to keep the business running: temporary premises, overtime wages, generator rentals, expedited shipping, etc. File invoices and receipts in a dedicated “BI-claim” folder. Well-organized extra-expense proof speeds reimbursement.
Use Accepted Accounting Methodologies. Work with a forensic accountant to calculate lost net profit plus continuing operating expenses, minus any savings (e.g., idle-plant utilities). Large insurers hire their own “loss accountants”; having your own expert levels the playing field—sometimes the policy even covers their fee.
Since our founding, our firm has secured more than $500 million in settlements for policyholders pursuing after fires, floods, and explosions Accurate profit-and-loss statements are the backbone of any business interruption claim and often determine whether the insurer agrees to your projected recovery period. One frequent reason a business interruption claim gets underpaid is miscalculating the indemnity period—insurers rely on that oversight to cap payouts at 12 months. If you’re facing a looming deadline on a business interruption claim, contact us today for a no-obligation strategy review.
Navigating Common Policy Pitfalls and Exclusions
Underinsurance: Assuming You’re Fully Covered
Before a loss, verify that your business-income limit matches today’s earnings. A low limit—or violating a coinsurance clause—cuts any payout.
Inadequate Indemnity Period
Standard policies stop paying after 12 months. Rebuilds, permits, and supply-chain delays can take longer. Consider extended-period endorsements.
Excluded Perils or Coverage Gaps
Flood, earthquake, off-premises power outage, and pandemic losses often require special endorsements. Know your exclusions before disaster strikes.
Poor Claim Preparation and Presentation
Math errors, missing documents, or inconsistent narratives invite delays or denials. Work with us to ensure you submit a clean, well-evidenced package the first time.
Failure to Mitigate Damages
Policies mandate “reasonable steps” to reduce loss. We help you document every mitigation effort and its cost; many will qualify as reimbursable extra expenses.
Michigan Business Interruption Claim: Documenting Complex Financial Losses
- Call Fabian Sklar King & Liss
The sooner we’re on the file, the sooner we can preserve evidence, control the carrier’s narrative, and protect every dollar of coverage. - Let us manage the insurance dialogue.
We handle all notices, policy-holder obligations, and adjuster interactions—shielding your executives from costly missteps or inadvertent disclosures. - Leverage our rapid-response team.
We immediately deploy forensic accountants, cause-and-origin experts, and trusted public adjusters to build an iron-clad valuation before the insurer sets the agenda. - Stay focused on reopening.
While your leadership restores operations, our attorneys drive the claim, meet every deadline, and push the carrier to pay in full and on time.
Partner with Experts Who Know Business Interruption Inside and Out
Fabian Sklar King & Liss, P.C. has devoted four decades to property-insurance claim advocacy for Michigan businesses. Our attorneys helped write Michigan Insurance Law & Practice and have recovered hundreds of millions for policyholders.
“Insurance companies often try to minimize business-income payouts by exploiting vague policy language,” notes our Managing Partner Jason Liss. “We assemble irrefutable proof to hopefully compel carriers to pay every dollar owed.”
From policy interpretation to expert coordination, we handle the heavy lifting so executives can focus on restoring operations.
Need more detail? Visit our Property Insurance Claims practice page or browse our Business-Interruption FAQ.
Conclusion: Secure the Full Benefit of Your Coverage
A disaster may pause your operations, but it doesn’t have to cripple your finances. Meticulous documentation, proactive policy reviews, and seasoned advocates are the keys to a full recovery.
Need guidance now? Contact Fabian Sklar King & Liss for a no-obligation strategy review. Our team stands ready to maximize your business-interruption claim.
Additional resources:
NFPA 72 & FEMA Guidance for Your Michigan Business Interruption Claim
NFPA’s Standard 72 shows why fire-alarm downtime can extend a period of restoration. FEMA’s
business-interruption fact sheet
explains how federal disaster declarations influence claims.