What Is Business Interruption in Personal Injury Law?

Business interruption refers to the financial losses a business suffers due to its inability to operate normally following an accident, disaster, or legal issue caused by negligence or wrongful acts. While commonly associated with business insurance claims, business interruption can be relevant in personal injury law when an individual’s injury impacts a business they own or operate, or when an accident disrupts the operations of another business entity.

Key causes of business interruption in personal injury cases:

• Workplace Accidents: Injuries to key personnel may prevent business operations from continuing as normal.
• Premises Liability: Accidents on business property (e.g., a fire or flooding) may force temporary closures.
• Defective Products or Services: Harm caused by faulty equipment or machinery may result in downtime.

Why Is Business Interruption Significant in Personal Injury Cases?

Business interruption is critical because it affects not only the injured party but also the financial health of a business. Its significance includes:

• Economic Losses: Business owners may claim damages for lost income, reduced profits, and ongoing fixed expenses incurred during the interruption.
• Third-Party Liability: If a business interruption is caused by a third party’s negligence (e.g., a car accident damaging a storefront), a claim can be filed to recover losses.
• Impact on Damages: Personal injury cases may include claims for business interruption losses as part of the economic damages sought by the injured party.

To address business interruption effectively, victims should work with attorneys experienced in both personal injury and business law to calculate losses accurately, gather supporting evidence, and pursue compensation for all damages resulting from the interruption.