Businesses of all sizes across the country are struggling with the harsh realities of 2020. Many small to medium-sized businesses are doing everything they can to counterbalance the loss of income caused by the COVID-19 pandemic and natural disasters, such as widespread wildfires. If you are like the countless other business owners unsure of how to handle loss of business earnings in San Francisco, CA, read on to discover what you need to do to protect yourself and your enterprise.
Research insurance options
To handle the loss of business income in San Francisco, CA, look into business interruption insurance. These services cover lost net income, mortgage, rent, lease payments, loan payments, taxes and employee payroll. For many small business owners, this insurance coverage can either make or break your company during tough times.
If you not only lost profits but property as well, that’s an entirely separate insurance claim process. You’ll need to speak with your insurance provider about your property insurance policy to claim funds for your damaged property.
To submit a business interruption insurance claim, you also need to calculate your losses. While your insurance company will figure what they believe is your total loss, you also need to do the math yourself. Nobody knows your business and the expenses of operating it like you and your financial adviser. You must know the exact details of your lost earnings to ensure you regain as much income as possible. Keep in mind that business interruption insurance covers many expenses associated with keeping your company afloat.
Gather detailed records
Once you’ve done the math and have a number, you need to gather the necessary documentation for your insurance provider. To ascertain how much income you might have normally generated during the period of loss, the insurance company examines the financial documents you provide. That means you have to get together all relevant documentation and deliver it to your insurance agent.
Since you’ve already calculated your loss, you probably already created files with essential documents, but double-check your work and remember to err on the side of too much information instead of not enough. Claiming business losses from an insurance company demands a thorough case supported by hard numbers. The more you provide, the more likely it is you’ll receive the full amount.
Hiring a forensic accountant
For those business owners who have never needed to know how to handle loss of business earnings in San Francisco, CA, hiring a forensic accountant can make all the difference when filing a business interruption insurance claim. A forensic accountant analyzes your finances to help you determine the total impact of your loss.
When you employ a forensic accountant’s services, this person conducts a valuation of your company and works with you to put together the necessary materials you’ll need for insurance purposes. The assistance of these individuals vastly improves your chances of recouping all of your lost income.
Don’t let the unprecedented circumstances of 2020 bankrupt you or the business into which you’ve invested so much over the years. Instead, contact us to learn more about how to handle the loss of business income in San Francisco, CA.