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Filing a business interruption insurance claim can be a complex process, but it is essential for recovering financial losses during periods of interruption. Making mistakes during the claims process can result in delays or even denial of coverage.

To help ensure a smooth and successful claim, this blog post will outline common mistakes to avoid when filing a business interruption insurance claim.

Lack of Understanding:

One of the biggest mistakes is needing to fully understand the terms and conditions of your business interruption insurance policy. Carefully review your policy before an interruption occurs so you know what is covered, the triggers for coverage, the waiting period, and the documentation required for a claim.

Delaying Notification:

Notify your insurance provider as soon as possible when an interruption occurs. Delaying the notification can result in complications and may even lead to denial of the claim. Follow the procedures outlined in your policy for reporting the interruption promptly.

Insufficient Documentation:

Accurate and thorough documentation is critical when filing a business interruption insurance claims. Keep detailed records of your business operations, financial statements, inventory, and relevant information. Failing to provide sufficient documentation can hinder the claims process and result in a lower settlement.

Business Interruption Insurance Claims

Inadequate Preparation:

Prepare for a potential interruption by having a well-documented business continuity plan in place. This plan should outline the steps you will take to minimise losses and resume operations as quickly as possible. Lack of preparation may raise questions about your business’s efforts to mitigate losses and can impact the outcome of your claim.

Not Considering Expert Help:

Navigating the complexities of a business interruption insurance claim can take time and effort. Consider seeking expert help from insurance professionals, such as a public adjuster or an experienced insurance attorney. They can guide you through the process, ensure you understand your rights, and help maximise your claim settlement.

Misunderstanding the Coverage:

Understand the specific coverage your business interruption insurance policy provides. Some guidelines have limitations or exclusions, such as waiting periods, specific triggers for coverage, or exclusions for certain events or circumstances. Misinterpreting or overlooking these details can lead to claim complications or denials.

Not Mitigating Losses:

Business interruption insurance expects policyholders to take reasonable steps to mitigate losses during an interruption. Document your efforts to minimise losses and keep records of any expenses incurred. Please implement appropriate measures to reduce losses to ensure your claim is on track.

Failure to Track Extra Expenses:

During an interruption, your business may incur additional expenses to expedite recovery. It is crucial to track and document these extra expenses carefully. They may be eligible for coverage under your business interruption insurance policy, and failing to include them in your claim can result in missed compensation.

Inconsistent Financial Records:

Maintain accurate and consistent financial records before, during, and after an interruption. Ensure your financial records are up-to-date and organised. Inconsistencies or discrepancies in financial statements can raise red flags during the claims process and may lead to a lower settlement or denial of the claim.

Accepting an Unfair Settlement:

Insurance companies may initially offer a settlement lower than what you are entitled to under your policy. They can help negotiate a fair settlement that adequately covers your losses. It’s important to review any compensation offers carefully and consult with an insurance professional before accepting.


Avoiding these common mistakes when filing a business interruption insurance claim can significantly increase your chances of a successful and timely settlement. Understand your policy, document losses thoroughly, seek expert assistance, and proactively mitigate losses. By taking these precautions, you can confidently navigate the claims process and recover the financial losses your business has incurred.