How to Recover When Your Small Business Building Collapses

Last Updated: 

January 10, 2023

Want to Close Bigger Deals?

There is no denying the fact that many small businesses are already struggling to stay afloat without being subjected to substantial losses like the building they occupy collapsing. It will most often result in a total loss and although insurance will cover some of those losses, it can often be a matter of who is liable. When it comes to recovery, no matter the source, compensation is imperative if you are to rebuild.

So, with that in mind, let’s look for a minute at who will ultimately be held responsible.

Do You Rent or Own Your Small Business Premises?

The first point to consider is exactly who owns the building. If you are the owner, then your insurance company ‘might’ cover the losses but what if it’s due to faulty construction? Who, then, would be responsible? Would it be your insurance company, the builder, their insurance company or even the supplier of substandard materials?

There are so many parties involved that you would probably do best to visit https://www.rblaw.net/practices-building-collapse to look at what it takes to get compensated for your losses. Right off the bat you should know that you will have the best results with a legal team that is well-versed in these types of suits.

Loans Pending Outcome of Claims and Lawsuits

It may take quite a while to actually get compensated for your losses. It can take a year or more to even see the inside of a courtroom. In the meantime, how can you do business if your current business is a total loss? Maybe a few things were salvageable, but not near enough to find a new location from which to operate. It really doesn’t matter what kind of business you are in because literally every industry has tools of the trade and those can be replaced, but it takes money.

What you may want to do is find a lender with reasonable rates that will give you a small business loan. Unfortunately, even though you’ve found the resources to reopen, it will take time to get everything situated. From finding a new building from which to operate through to ordering everything necessary to start up again, it can take months. Did you lose customers due to the collapse? How about your employees? Did they find new jobs in the meantime? You can’t blame them if they did because like you, they need to earn a living as well.

Keep a Tally of Everything Being Lost

One of the things your attorney may explain to you is that you will need to keep track of everything you have lost or expect to lose until you can recover your business. That is money lost that someone should be responsible for compensating, and it can be included in your claim and subsequent lawsuit.

Once again, the only way to recover will take a substantial amount of money and unless your company has a sizable savings, you will be left with no alternative than to get a small business loan or simply close your doors for good. If you intend to reopen, then going out of business is not an option. You know what needs to be done, so let your lawyer work for you and all will work out in the end.

People Also Like to Read...

Don't forget to check out our Case Studies and also how Business Coaching can help your business. If you're ready to talk further and get the full coaching experience you can book a FREE 30-Minute Coaching Session.