Business Interruption Claims from the SoCal Wildfires: Protecting Businesses in Malibu, Pasadena, Ventura County & Beyond
By Crowley Law PC, Los Angeles Business and Insurance Attorneys
A view of downtown Los Angeles with towering skyscrapers set against a backdrop of thick smoke from the Southern California wildfires.
Southern California is no stranger to wildfires. Communities like Malibu, Topanga, Pacific Palisades, Altadena, Pasadena, Calabasas, Agoura Hills, Thousand Oaks, and Ventura County have faced the devastating effects of these natural disasters. For business owners, wildfires don’t just threaten destruction of property—they can also lead to prolonged closures, lost revenue, and mounting expenses.
This is where business interruption insurance can be a lifeline. At Crowley Law PC, we’ve helped countless businesses navigate the complexities of wildfire-related claims. Here’s what you need to know to protect your business and recover your losses.
How Wildfires Disrupt Businesses
Wildfires can impact businesses in several ways:
Forced Closures: Evacuation orders and safety concerns often force businesses to shut down temporarily.
Property Damage: Flames, smoke, and water used to fight fires can damage buildings, inventory, and equipment.
Lost Revenue: Closures and reduced customer traffic can lead to significant income losses.
Ongoing Expenses: Even when closed, businesses must still pay rent, utilities, and employee wages.
Does Business Interruption Insurance Cover Wildfires?
In most cases, yes. Business interruption insurance is designed to cover losses when your business is unable to operate due to a covered event, such as a wildfire. This coverage typically includes:
Lost Income: Reimbursement for revenue you would have earned during the closure.
Operating Expenses: Coverage for ongoing costs like rent, utilities, and payroll.
Relocation Costs: If you need to temporarily move your business, these expenses may be covered.
Extra Expenses: Costs incurred to minimize the disruption, such as renting equipment or hiring cleanup crews.
However, policies can vary, and some may have exclusions or limitations. It’s crucial to review your policy carefully to understand what’s covered.
Steps to File a Business Interruption Claim After a Wildfire
Review Your Policy
Understand your coverage, including any exclusions or limits related to wildfires. If you’re unsure, consult an attorney.
Document the Damage
Take photos and videos of fire-related damage to your property, inventory, and equipment. Keep detailed records of all losses.
Calculate Your Losses
Work with an accountant to determine your lost income and ongoing expenses. Be prepared to provide documentation, such as profit and loss statements, tax returns, and invoices.
Notify Your Insurance Company
Report the interruption and start the claims process as soon as possible. Follow their procedures and deadlines closely.
Keep Detailed Records
Document all communications with your insurer, including emails, letters, and phone calls. This will help if there are any disputes later.
Seek Legal Help if Needed
If your claim is denied, delayed, or underpaid, don’t hesitate to reach out to an experienced attorney. At Crowley Law PC, we can help you appeal the decision and fight for the compensation you deserve.
Common Challenges with Wildfire-Related Claims
Proving Losses: Calculating lost income can be complex, especially for seasonal businesses or those with fluctuating revenue.
Policy Exclusions: Some policies may exclude certain types of damage or have limits on coverage.
Delays and Denials: Insurers may take longer than expected to process claims or deny them outright.
How Crowley Law PC Can Help
The aftermath of a wildfire can be overwhelming, but you don’t have to face it alone. At Crowley Law PC, we specialize in helping businesses in Malibu, Topanga, Pacific Palisades, Altadena, Pasadena, Calabasas, Agoura Hills, Thousand Oaks, Ventura County, and other affected areas navigate business interruption claims. We’ll review your policy, gather documentation, negotiate with insurers, and file a lawsuit if necessary to ensure you receive fair compensation.
Final Thoughts
Wildfires are an unfortunate reality for Southern California businesses, but with the right preparation and support, you can recover and rebuild. If your business has been impacted by a wildfire, don’t wait to take action. Contact Crowley Law PC for a free consultation and let us help you protect your business and secure your future.
Crowley Law PC
Here to make it right when you’ve been wronged!
(213) 325-5248
