Commercial Business Interruption Claims in Texas
Lost income, lost rents and extra expense after a property loss, and the records that show them.
Commercial property losses
The policy sets the rules. The records show the loss.
Coverage, waiting periods and how the loss is measured come from the policy. Your financial records decide how clearly the loss can be shown.
- Lost income
- Lost rents
- Extra expense
Read the business income, rental value and extra expense parts of the policy, then gather financial records from before and after the loss. Ask the insurer in writing which period and method it is using.
From loss to recovery
- Loss dateThe property damage happens.
- Waiting periodSome policies do not pay for an initial period. Check yours.
- RestorationRepairs or rebuilding take place.
- Ramp-upIncome may take time to return after repairs. Check whether the policy addresses this.
Records to gather
- Profit and loss statements and balance sheets, before and after the loss
- Tax returns
- Rent rolls and leases
- Payroll records
- Invoices, sales records and budgets
- Receipts for extra expenses, such as temporary space or equipment
Rental property and apartments
For apartment and other rental property, lost rents, vacancies and concessions may be part of the claim. Whether they are covered depends on the policy. Keep unit-by-unit rent rolls before and after the loss. See apartment complex insurance claims.
Working with an accountant
Business interruption claims are built on financial records. Many owners involve their own accountant. Whether you need one depends on the size and complexity of the claim.
Questions to ask the insurer in writing
- What period are you using to measure the loss, and why?
- What records do you need from me?
- Which policy forms and endorsements apply to income and extra expense?
About my background
Before I practiced law, I spent years on the property side of insurance claims. I was previously licensed and worked as a public adjuster, roofing contractor, home inspector and contractor, and I inspected and estimated large residential and commercial properties with many buildings. I also served as an appraiser, an umpire and a retained witness in first-party insurance disputes. I never worked for an insurance company.
Today I'm an attorney licensed in Texas and Alabama. I'm also a Florida mediator, but I don't practice Florida law. Every case is different, and no result can be promised.
Other states. The rules for a property in another state can differ. I am licensed to practice law in Texas and Alabama only, and I do not practice Florida law.
Frequently asked questions
What records show a business interruption loss?
Financial statements, tax returns, rent rolls, leases, payroll, invoices and receipts for extra expenses, from before and after the loss.
Does business interruption cover rental income?
Some commercial policies cover lost rents or rental value. It depends on the policy forms and endorsements.
Do I need an accountant?
Not always. Many owners involve their own accountant, especially on larger or more complex claims.
How long can coverage last?
The policy sets the period. Many policies measure it by the time reasonably needed to repair or rebuild, and some include extended coverage after repairs.
What if the insurer says the loss is not covered?
Ask for the reasons in writing, with the policy language relied on, and talk to a lawyer. My consultation is always free.
Related pages
Michael P. Bowman is licensed to practice law in Texas and Alabama only. The firm's office is in Austin, Texas; the firm does not have a bona fide office in Alabama. Law Office of Michael P. Bowman PLLC (The Claim Attorney), 7903 Entrada Cove, Austin, TX 78730. (512) 352-9937. Last updated October 29, 2026.
General information, not legal advice. Contacting us does not create an attorney-client relationship. Responsible attorney: Michael P. Bowman, Austin, Texas.
