Business Interruption Claim Letter
Letter notifying insurer of a business interruption (BI) claim — covered peril, period of restoration, lost income.
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ACME BISTRO LLC
482 Elm Street, Portland, OR 97214
Date: June 19, 2026
To: Pacific Mutual Insurance
Pacific Mutual Claims, P.O. Box 5500, Seattle, WA 98101
Re: BUSINESS INTERRUPTION CLAIM
Policy number: COMM-PKG-2026-04481
Date of loss: April 22, 2026
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To Whom It May Concern,
This letter is formal notice of a business interruption (BI) claim under the policy referenced above. Property-damage coverage is being adjusted separately; this notice addresses the BI / extra-expense coverage component.
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LOSS DESCRIPTION
On 2026-04-22, a fire originating in the kitchen ventilation hood damaged the cooking line and caused smoke damage throughout the dining room. The Portland Fire Bureau report (incident #PF-2026-0440228) confirms the fire originated in covered premises and was not caused by an excluded peril (no arson, no faulty maintenance found). Initial direct property damage is being adjusted under our property coverage; this letter addresses the BUSINESS INTERRUPTION coverage component.
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PERIOD OF RESTORATION
Approximately 8-12 weeks (April 22 - June 30, 2026, with 2-week buffer through July 14)
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LOSS CALCULATION (preliminary - subject to forensic accounting)
Average monthly net income pre-loss: $28,000.00
Continuing fixed expenses per month: $12,000.00
Anticipated extra expenses (one-time): $8,500.00
These figures are preliminary. We will provide forensic-accountant calculations within 30 days of full damage assessment.
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DOCUMENTS ATTACHED
Portland Fire Bureau incident report (#PF-2026-0440228).
Last 24 months of profit-and-loss statements (for income calculation).
Last 24 months of monthly bank statements.
Federal tax returns 2024 and 2025.
Payroll records (last 12 months).
Vendor contracts showing fixed costs continuing during interruption.
Lease agreement (rent continues during restoration).
Photographs of fire damage, taken 2026-04-22 and 2026-04-23.
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REQUEST
We respectfully request:
(1) Acknowledgement of this BI claim within 10 business days.
(2) Assignment of a claims adjuster experienced in business-interruption claims.
(3) Coordination with the property-damage adjuster (handling the direct loss).
(4) Advance / partial payment toward continuing fixed expenses where supported by the policy, pending final calculation.
We will cooperate with the forensic-accounting review and provide additional documentation as requested.
Sincerely,
_______________________________ Date: June 19, 2026
Acme Bistro LLC (by authorised representative)
About this template
Business interruption (BI) insurance covers lost income and continuing expenses when a covered property loss forces the business to suspend operations. BI is typically packaged with property coverage in commercial policies. The "period of restoration" — the time reasonably required to rebuild or repair, beginning at the date of loss and ending when the property could be restored — defines the coverage window. Most policies have a 72-hour waiting period before BI begins paying. The most-litigated BI questions: (1) was the loss caused by a covered peril (fire, wind, water from specific causes) or an excluded one (flood, earthquake, war, virus/pandemic)?; (2) is there "physical damage" requiring restoration? (the COVID-19 cases extensively litigated whether business closure orders without physical damage qualified — most courts said no); (3) what is the proper period of restoration?; (4) what are the actual lost earnings? Forensic accountants typically prepare BI calculations using historical revenue trends, seasonality, and continuing expenses. Common pitfalls: under-reporting pre-loss revenue (caps the recovery), over-reporting reduces credibility, missing the prompt-notice obligation in the policy, and failing to mitigate (insurers expect reasonable efforts to resume operations). Notify the insurer immediately upon loss; the prompt-notice provision can be enforced strictly. For complex BI claims (over $100K), engage a public adjuster or BI-specialised attorney early — insurers retain experienced BI adjusters and forensic accountants who tend to under-calculate without strong policyholder advocacy.
When to use it
- Fire, wind, water, or other covered loss forcing business closure.
- Equipment breakdown disrupting operations.
- Civil-authority order tied to nearby covered loss.
- Contingent business interruption (key supplier or customer suffers covered loss).
- After insurer has under-paid or denied a BI claim - written documentation step.
What to include
- Insured business identification and policy number.
- Date of loss and cause/peril description.
- Period of restoration estimate.
- Pre-loss income and continuing-expense documentation.
- Extra expenses anticipated.
- Document checklist for forensic-accountant review.