Business Interruption Claims After Flood Damage

If your business holds Business Interruption Insurance, it’s essential to verify whether the policy includes flood damage. Not all policies do. If yours does, you may be entitled to claim lost profits, but only within the terms of your policy and the defined indemnity period.

Don’t Have Access to Your Records?

Floods often destroy physical records. In this case, you'll need to demonstrate a reasonable basis for calculating your loss. Your accountant’s office or secure off-site backups may hold the necessary documentation. The key is substantiating your claim with consistent and logical evidence.

Records You’ll Need to Support a Business Interruption Claim:

To determine your losses accurately, you will likely need:

• Monthly Profit and Loss Statements for at least 12 months before the flood

• Any evidence of seasonal or business trends requiring adjustments to the historical data

• Details of increased costs of working since the flood (temporary relocations, equipment hire, etc.)

• Profit and Loss Statements prepared up to the current date

• Payroll records for the 12 months before the flood and post-event updates

Progress Claims May Be Necessary

Business recovery is rarely instant. If your losses continue beyond the initial period, progress claims may be lodged. Some policies allow this to continue for more than a year, depending on the conditions set in your insurance agreement.

Need Help with Your Claim?

Dolman Bateman are specialist forensic accountants with deep expertise in Business Interruption Insurance claims, including complex flood and natural disaster cases. We can help:

• Interpret your insurance policy

• Gather and reconstruct financial records

• Calculate and justify loss of profits

• Assist with preparing and lodging your claim

Our costs may even be covered by your insurance policy.

Get in touch today for a no-obligation consultation.

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Disclaimer:

The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.