What Does Business Insurance Cover?

Most standard commercial policies provide two types of coverage for businesses:

  • Property Damage
  • Business Interruption

Businesses and brokers are familiar with property damage claims, but less familiar with business interruption claims, which are minor claims in a typical insurance event.

Given the lengthy recovery period after Hurricane Maria, businesses likely have large business interruption claims, but they may be unfamiliar with asserting these claims.

How Are Claims Submitted?

Insurance Executives report 85% of commercial policies have business interruption coverage. Yet the Puerto Rican Insurance Commissioner reports that:

  • Out of 35,000 commercial claims, only 2,400 (<7%) sought business interruption coverage.
  • Only 30% of all claims have received an interim payment.

Thousands of businesses have valid BI claims, but have either not asserted them or have not yet received any interim payments.