On the morning of March 20th, a group of bandits started a mass shooting against the police at the LAPD parking lot on Las Tunas Boulevard and close to Rosemead Boulevard. Both streets were locked down as a result, and therefore causing many business losses for the stores in the area. How should business losses be taken care of in these situations?
American commercial insurance expert Kenny Chang stated that Business Income Insurance or Business Interruption Insurance will help cover losses from interrupted business in instances stated in the policy. Insurance companies will evaluate the reasons behind business interruption and whether your policy content covers the damage first, before they determine if they are to accept the claim. Commercial insurance does not cover losses caused by instances such as earthquake, governmental action, flood, nuclear hazards and etc. The case mentioned above is a result of a governmental action and thus losses are usually not covered.
There are usually three forms of commercial insurance:
- Basic form: Only covers what’s stated in the policy.
- Broad form: Only covers what’s stated in the policy. (Covers more content than Basic Form)
- Special form: Covers all damages except for the ones that are specified as excluded.
To file a commercial insurance claim, you have to provide tax declaration and income certification. The insurance company may also require a proof of income of your business for the past months or year in order to assess your loss. In cases where an employee wants to make a claim regarding a work injury, the insurance company will request for the employee’s paycheck stub from the employer. If the employee is paid by cash, they tend to receive less reimbursement, because it is hard to prove how much is really earned.
Premium costs are important, but they shouldn’t be the only part that’s focused upon. It is crucial that you understand what is covered by your policy. If you have any questions or you want to learn more about commercial insurance, please contact KCAL Insurance Agency at 1-800-681-8288.
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