How Do You File a Claim for Lost Income?

After a fire, flood, or other insured event disrupts your business, your priority quickly shifts from physical recovery to financial stability. Business Interruption Insurance can help — but in order to access those benefits, you need to file a claim for lost income, and that process requires preparation and documentation.

This type of claim is more detailed than reporting property damage. It involves proving not just that you lost income, but how much you would have earned had the disruption not occurred. Knowing how the process works helps you submit a strong, timely claim and avoid unnecessary delays.

Step 1: Notify Your Insurer Immediately

Start by contacting your insurance provider as soon as you are aware of a disruption that may lead to lost revenue. Most policies require prompt notice, and delays can compromise your eligibility.

Be prepared to describe what happened, when it occurred, the extent of damage to your premises, and whether your business is still partially or fully closed. This initial step activates your claim process and connects you with an assigned adjuster.

Step 2: Review Your Policy

Take time to review your insurance policy in detail. Confirm that the event qualifies as a covered peril, understand your waiting period (usually 48 to 72 hours), and check the coverage limits and duration.

Knowing what is and is not covered helps you tailor your documentation and prevents misunderstandings later in the process.

Step 3: Gather Financial Records and Documentation

This is the most important part of your claim. You will need to show how much income your business would have generated if the interruption had not occurred.

Prepare to submit:

• Profit and loss statements for the past 6 to 12 months

• Recent tax filings or accounting records

• Payroll records showing ongoing staff obligations

• Utility bills, rent statements, or loan payments that continue during closure

• Any documentation of cancelled bookings, contracts, or service delays tied to the event

If possible, begin compiling this information immediately after the disruption. The longer you wait, the harder it becomes to gather a complete picture.

Step 4: Submit the Claim and Support Materials

Once you have collected the necessary information, submit your claim through your insurer’s process. Some insurers require a formal claim form, while others may accept documentation directly through a claims portal or adjuster contact.

Include:

• A written summary of how the loss occurred and how it affected your operations

• Copies of key financial records and supporting invoices

• Proof of physical damage or interruption if applicable

You do not need to wait until you have every document to begin. It is better to submit early and follow up with any requested items than to delay the process.

Step 5: Communicate and Cooperate With Your Adjuster

After submission, an insurance adjuster will review your file and may reach out with questions, requests for additional documentation, or to verify financial assumptions. Respond promptly, stay organized, and keep clear records of all correspondence.

If the adjuster challenges parts of your claim or suggests a reduced payout, you have the right to provide clarification, additional documentation, or request a review.

A Strong Claim Starts With Preparation

Filing a claim for lost income takes time, but with clear records and prompt action, the process can be manageable. The more organized and proactive you are, the more likely you are to recover the income your business lost — and get back on track without lasting financial harm.