A Texas or Louisiana businessowner who experiences damage to his commercial property knows that the losses to his business extend far beyond the repairs of the building itself. Perhaps the biggest problem, aside from fixing their property, is that a business owner may have to close shop altogether while repairs are conducted. In other cases, even if the business can remain open, it can only do so while offering limited services. Of course, not being open translates in to lost profits and can also spell problems for a company's overall reputation and goodwill, as customers may have to go to competitors while a business is sidelined.
Many property insurance policies recognize the profound economic impact having to close for unexpected repairs can have on a commercial enterprise. This is why many policies offer coverage for so-called loss of use. As the name implies, this coverage is designed to compensate a business for lost profits in the event the it has to close because of fire or wind damage, or some other natural or even man-made disaster.
Figuring out the loss of use benefit can be a tricky proposition, however. For one, it will inevitably involve going through business records and doing the math to determine how much revenue a business lost through a temporary closure and, on the other hand, how much in expenses the business saved by remaining closed.
Unfortunately, some insurance companies may push back about loss of use payments, and sometimes not with the best motives. Claiming the loss of use benefit is one additional reason why a business may want professional legal help with processing their commercial property damage insurance claims.