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What to do when your business interruption claim is denied

In the Twin Cities, a tornado, fire or other natural disaster can destroy your home and turn your life upside down. They can do the same thing to a business, as can things like a severe water leak.

With your place of business damaged or uninhabitable, work will likely become impossible. This means that no money will be coming in, which can quickly force your business to go into bankruptcy, or fold.

Insurance companies offer coverage for this situation. It is called business interruption insurance, and it can give a business a lifeline when it must temporarily close its doors after a catastrophic event.

But buying a policy does not guarantee that the insurance company will step up if your business ever makes a claim. It might offer a lowball settlement that fails to cover the damage. Or it may wrongfully deny the claim outright, even going so far as to accuse the business owners of criminal activity, such as after a fire the insurance company claims was arson.

Besides being frustrating (and possibly insulting), a denied claim or unreasonable damages calculation can put the future of your business in jeopardy. One way to fight back is to enlist the help of an attorney with experience in commercial insurance matters. Your attorney will investigate your business' claim and determine the best way to receive recovery, whether that is in court or by other means.

A business owner fighting with his or her insurance company should call a lawyer as soon as possible.

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