Time element losses are losses resulting from the inability to use a property in its intended fashion. Insurance intended to compensate businesses for time element losses, known as Time Element Insurance, covers relevant losses for the period of time that it takes to repair or replace the unusable property.
Time element insurance may be referred to in a commercial insurance policy as business interruption coverage or extra expense coverage. If your business is suffering losses caused by the unusable property, contact a professional Public Insurance Adjuster at The Claims Company for help.
Time Element Loss Claims
If your policy covers time element losses, the compensation to your affected business covers losses starting from the date of the loss caused by the damaged property and ends when the property is returned to its pre-loss condition, assuming the repairs are made with due diligence. This time period is typically referred to as the “period of repair.”
On the part of the affected business, it is important to keep accurate records. To recover under a time element loss claim, the business will be required to document not only the period of time it takes to restore the damaged property but also sufficient documentation to prove the losses suffered.
Insurance companies will require, for example, historic sales figures for the previous year or two in order to apply those figures to the period of repair and thereby calculate the loss amount, typically referred to as the “period of indemnity.”
Time Element Loss Examples
Unless you’re in the insurance business, time element losses can be difficult to understand. For business owners, it’s best to understand before you experience losses rather than after so that you can make decisions on whether you need to add this type of insurance to your policy. Some brief examples are helpful in understanding the types of situations where the appropriate coverage can help.
Retail Store Owner
If you own a retail store, you likely have inventory that comes from a variety of vendors. If, for example, an electrical fire destroys your entire store, you’ll have to find another location and virtually start over.
Time element insurance can compensate you for your lost income as well as provide you with, for example, the funds necessary to hire a moving company, restock your inventory, make initial rent payments, and advertising to your old (and new) customers. This type of insurance is important if you live in an area prone to natural disasters.
Real Estate Owner
Let’s say you own commercial property that generates income through renting out units to a variety of small businesses, but a hurricane comes through your area and you have to temporarily evacuate. Upon your return, you discover that your property has been virtually destroyed, meaning you cannot rent it out to generate income.
Time element insurance can compensate you for lost income and normal operating costs while you rebuild.
How The Claims Company Can Help With Time Element Insurance Claims
The most difficult part of time element insurance is figuring out what type or types of coverage best suit your unique situation. There are dozens of types of specialized insurance you can purchase.
This is why your business should contact a professional Public Insurance Adjuster from The Claims Company. The Claims Company can help you review your insurance policy to determine the extent of your coverage, help you determine what types of coverage may be a good fit for your business, and file any necessary claims if there has already been damaged.