Business Interruption Claims: Recover Lost Income with Paramount Public Adjusters

Business Interruption coverage is designed to protect companies when disaster forces them to close or operate at reduced capacity. Unlike standard property insurance, which covers repairing physical damage, this coverage replaces the financial lifeline of your business — including lost income, payroll, rent, and essential ongoing expenses — while recovery takes place.

For landlords and property managers, many policies also include Loss of Use provisions, which can cover rental income losses when units are uninhabitable. However, insurers frequently dispute these claims, questioning whether losses are temporary, whether payroll is reimbursable, or whether projected revenue is accurate.

At Paramount Public Adjusters in Los Angeles, we specialize in untangling these complexities. Our team reviews your policy in detail, documents the true financial impact, and prepares claims that accurately reflect every covered loss. From calculating lost revenue and extra expenses to negotiating with insurers who try to minimize payouts, we make sure no dollar is left off the table.

With Paramount Public Adjusters on your side, your Business Interruption claim is backed by precise accounting, strategic negotiation, and experienced public adjusters dedicated to restoring your operations as quickly and fairly as possible.

Business Interruption doesn’t just happen after a fire or flood — it can result from a wide range of events that prevent you from serving customers or running operations at full capacity. Some of the most frequent causes include:

• Fire and Smoke Damage – forcing businesses to shut down while structures, equipment, and inventory are repaired or replaced.

• Water and Storm Events – flooding, roof leaks, and storm damage that make properties unsafe or unusable.

• Wildfires and Ash – causing direct property damage, evacuation orders, and prolonged closures.

• Burglary or Vandalism – leaving businesses with broken doors, stolen inventory, and weeks of downtime.

• Earthquakes and Structural Shifts – damaging foundations, utilities, and requiring extensive safety inspections.

• Utility Failures – power outages, gas leaks, or water main breaks that force a shutdown even without visible damage.

Business Interruption insurance is designed to cover more than just lost sales. It compensates for the wide range of financial pressures businesses face while recovering from a disaster. Typical covered losses include:

• Lost Revenue – replacing the income your business would have earned if operations had not been interrupted.

• Payroll Protection – keeping employees paid so you can retain skilled staff and avoid costly turnover during downtime.

• Operating Expenses – rent, utilities, insurance premiums, and other fixed costs that continue even while business slows or stops.

• Temporary Relocation Costs – expenses for moving to and operating from a temporary location until your property is restored.

• Extra Expenses – costs for expediting repairs, leasing new equipment, or outsourcing work to maintain customer commitments.

• Loss of Use for Landlords – recovery for rental income lost when tenants are forced out of damaged properties.

Insurance companies rarely pay Business Interruption claims without a fight. Even when policies clearly cover lost income and extra expenses, insurers often dispute the details in order to minimize payouts. Some of the most common pushback tactics include:

• Length of the Interruption – Insurers may argue that your business could have reopened sooner, cutting off compensation before you’ve actually resumed normal operations.

• Coverage of Expenses – Ongoing costs like payroll, rent, utilities, advertising, and relocation are often challenged as “unnecessary” or “not covered,” even though they are essential to keeping your business afloat during downtime.

• Accuracy of Projected Revenue – Carriers frequently dispute the financial projections business owners use to calculate losses, claiming estimates are “inflated” or based on “unrealistic” growth patterns.

• Customer Cancellations & Supply Chain Disruptions – Insurers may deny losses tied to canceled contracts, service interruptions, or supplier failures, leaving businesses underpaid for legitimate setbacks.

Without expert representation, many businesses accept settlements that fall far short of their actual financial damage.

Filing a Business Interruption claim is complex, and without professional guidance, many business owners leave significant money on the table.  This is what we do:

• Thorough Policy Review – We analyze your insurance policy line by line, identifying all applicable coverages for lost income, extra expenses, payroll, relocation, and extended periods of interruption. 

• Accurate Loss Measurement – Using detailed financial records, sales histories, seasonal fluctuations, and industry trends, our team creates a precise valuation of your income loss — one that insurance companies cannot easily dispute.

• Comprehensive Expense Documentation – From rent and utilities to advertising and temporary payroll, we gather and present evidence for every legitimate expense, ensuring nothing is overlooked.

• 360° Claim Management – We handle communications, respond to insurer requests, and provide photo, video, and financial documentation that supports your claim from start to finish.
• Expert Negotiation – Our adjusters are skilled in countering insurance company strategies designed to minimize payouts. We negotiate aggressively on your behalf to secure the maximum settlement possible.

• Restaurants & Cafés – Forced closures due to fire, water leaks, or equipment failures often lead to spoiled food stock, staff layoffs, and lost daily income.

• Retail Stores – Burglary, vandalism, or storm damage can shut doors overnight, causing inventory loss and significant revenue disruption.

• Medical & Dental Offices – Even minor property damage can force cancellations, reduce patient trust, and interrupt essential care services.

• Professional Offices (Attorneys, Accountants, Consultants) – Damaged workspaces and relocation delays mean lost billable hours and missed client deadlines.

• Hotels & Hospitality – Storms, wildfires, and water damage can close rooms or entire facilities, resulting in lost bookings and reputational harm.

• Warehouses & Manufacturing – Equipment damage, flooding, or power outages can halt production and delay supply chains.

• Property Managers & Landlords – Structural issues, tenant-caused damage, or disasters can mean rental income loss and legal disputes with tenants.