Adjusting Services
Business Interruption Loss
Sustaining an event that shuts down your business is stressful. The process of documenting and submitting the details of your loss of income is very involved. We specialize in presenting to the insurance company any loss of income due to a catastrophic event. For example, loss of inventory to be sold, loss of rental income, protecting key executives pay during repairs, and relocation of your business.
Business Interruption and Loss of Income Claims
When a fire or flood closes a business, the building repair is only part of the damage. The income stops, the rent and payroll do not, and customers find somewhere else to go. Business interruption coverage exists to replace that lost income, but it is the most involved claim in the policy. It requires financial records, projections, and a clear link between the physical damage and the lost revenue. Michaelson & Messinger prepares and presents these claims for business owners and landlords across Chicago and the suburbs.
What Business Interruption Covers
- Net income the business would have earned during the period of restoration
- Continuing expenses such as rent, payroll, loan payments, and utilities
- Extra expense to keep operating, such as a temporary location, rented equipment, or overtime
- Extended period of indemnity while customers return after reopening
- Civil authority coverage when the government closes access to the area
Loss of Rent for Landlords
For owners of two flats, apartment buildings, and commercial property, rental income coverage pays the rent you would have collected while the units are being repaired. We document the leases, the rent roll, and the repair timeline so the carrier pays for the full period, not the period it estimates the repair should have taken.
How We Build the Claim
We gather tax returns, profit and loss statements, sales records, and payroll for the period before the loss. We project what the business would have earned had the loss not occurred, accounting for seasonality and growth. We document every continuing and extra expense. We track the period of restoration against the actual repair schedule. Then we present the claim to the carrier and its forensic accountant, and we negotiate.
Restaurants, Retail, Offices, and Industrial
Our business interruption clients have included restaurants on the South Side of Chicago, retail and medical tenants in the suburbs, and industrial buildings along the I-55 corridor. Each has different revenue patterns and different coverage forms. We have read them all.
Start Early
The period of restoration begins on the date of loss. Every week without a claim on file is a week of income the carrier may not pay. Call 630.654.2600 as soon as the business is closed. The consultation is free.
Frequently Asked Questions: Business Interruption Loss
Do you handle claims for rental property and businesses?
Yes. For landlords we add loss of rent to the building and contents claim. For businesses we handle the building, business personal property, equipment, inventory, and business interruption, and we work with the carrier’s forensic accountant on the income claim.
How is my lost income calculated?
From your tax returns, profit and loss statements, sales records, and payroll for the period before the loss, projected forward with seasonality. We prepare the calculation and present it to the carrier’s forensic accountant.
What is the period of restoration?
The time it should reasonably take to repair the property and reopen. Business interruption pays through that period. Carriers estimate it short. We tie it to the actual repair schedule.
Does business interruption cover payroll?
Continuing expenses such as payroll, rent, loan payments, and utilities are covered so the business can hold its staff and its lease while closed. We document each one.
What is extra expense coverage?
It pays the cost of keeping the business running at a temporary location, renting equipment, or paying overtime to reduce the shutdown. It is separate from lost income and often unused.
Does loss of rent cover the whole time my units are empty?
It covers the period of restoration. If the carrier’s repair estimate was too short, the rent claim is short too. We document the real repair timeline so the rent is paid for the full period.
Do restaurants have special business interruption issues?
Yes. Spoiled inventory, hood and fire suppression rebuilds, health department reopening inspections, and seasonal revenue swings all affect the claim. We have handled restaurant fires across Chicago.
