Having Business Interruption Insurance Pays

When there was a sewer line backup, the coin laundry operator called in all of the help he could find to get it taken care of. After a full day, they were unable to locate the cause. Then they brought in a small snake TV camera to go into the line to find the blockage. The owner felt that this was amazing technology. Using this special camera they found that a freak car accident had caused a blockage under the floor near the front, by a row of top load washers. The floor would have to be torn out and the top load washer area closed off to the customers. It also meant there would be a loss of business for several more days. This laundry operator was about to find out if having business interruption insurance pays. First, he could prove that there was a loss of income. Having precise computer records paid off. With his system, he could show the per day income from the top loaders. He was also able to show what business he got out of the front loads that increased when the tops were down. He felt he could actually prove the historical cash flow of the laundry and would thus be able to prove his losses. The insurance company agreed and approved the business records and quickly instituted payment for the loss. Unfortunately, the insurance didn''t cover the costs for the plumbers, concrete and floor tile people that the owner needed to get back into business. But, because he had excellent records to go along with business interruption insurance coverage, his only loss was the costs for the repair work. Being insured his income stayed the same as before the floor and sewage repairs were completed.