Tag Archives: Business Income

Business Interruption Will Play Big Role in Rebuilding the U.S. Virgin Islands After Irma

The U.S. Virgin Islands holds a special place in my family’s heart. Nothing makes my wife Ashley and I happier than a sail full of trade winds carrying us to the next secluded cove or rowdy beach bar. While most of the national media focused on Hurricane Irma’s trek toward Florida, it is now clear … Continue Reading

Business Income and Extra Expense – Understanding the Differences

In addition to covering property damage, most first-party commercial insurance policies offer business interruption coverage. Business interruption coverage typically has two different built in coverages: business income and extra expense. Both are intended to assist businesses in the event a covered peril damages business property and impacts business operations.… Continue Reading

Even if Gross Profits Increase after a Loss, Business May Still Have Business Income Loss

When calculating a business income loss, it is important to look at the company as a whole and to look at individual segments of the business. Under a standard loss calculation where the projected “but for” revenues were considered by deducting the revenues from sales of substitute products and applying a profit factor to the … Continue Reading

Expenses to Reduce Your Loss are Covered Under Your Business Income Coverage

Business Interruption losses can be complicated, confusing, and for some business the damages are the end of the story. Having the right coverage for your business, your buildings, and the business property can make all the difference for your livelihood if a loss occurs. One additional coverage that is also common to purchase is Extra … Continue Reading

Dodged the Storm but Loss of Business Income is Still Covered

Actual property damage outside the US was used to support a claim for business interruption for a popular restaurant chain. In an interesting case for loss of business income,1 policyholders were able to prevail by showing how a local evacuation order and hurricane damage in the Bahamas would trigger coverage for 2 ½ days of lost … Continue Reading

Law Firm Cannot Recover Business Income Losses Resulting from Intentional Pre-Superstorm Sandy Power Outage

A law firm in New York was without power prior to Superstorm Sandy making landfall. The reason for the power outage was because the utility company preemptively shut down power for several days prior to the storm as it anticipated there would be significant pre-storm flooding. The insured premises sustained no flooding or physical damage … Continue Reading

How to Recover Business Income Losses Related to Hurricane Sandy Even If Your Business Did Not Have Flood Insurance?

Many businesses in the Northeast have had their business interruption claims denied because they did not have flood insurance. Flood damage is typically excluded from most commercial property policies, but businesses sustained many other types of losses that should be covered under most commercial policies despite the flood damage and lack of flood insurance.… Continue Reading

Business Interruption Claim Denials After Hurricane Sandy Abound in New York City

What’s more disheartening than seeing your business destroyed by an unexpected catastrophe? – Being informed that your insurance company will not pay a dime. Business owners in the City are receiving letters from their insurers denying coverage for the damages caused on October 29, 2012. Denial letters cite policy language to the effect:… Continue Reading

Maximize Your Insurance Recovery for Business Income Losses Related to Hurricane Sandy

Many New York business owners have been denied insurance recovery based on causation issues (i.e., property damages and business income losses were caused by flood which is excluded under most policies). However, many insurance policies provide a measure of coverage and recovery through Civil Authority and Ingress/Egress provisions, which are not triggered by damages at … Continue Reading

Business Income Losses Caused By Hurricane Sandy Are Recoverable Despite Anti-Concurrent Causation Exclusions

I have reviewed denial letters sent to policyholders in New York and New Jersey. Their business income claims have been denied because the “physical loss or damage” was caused, in whole or in part, by an excluded peril – power failure. Hurricane Sandy was a complex windstorm event that caused many perils – power outages, … Continue Reading

Businesses Affected by Hurricane Sandy Should Reasonably Expect Recovery Under Contingent Business Insurance

Hundreds of thousands of businesses were affected in one way or another by Hurricane Sandy. The insurance industry estimated over $20 billion dollars in business income losses. Many have presented insurance claims for their lost profits that have been denied because the business was not completely “shut down” or it did not sustain “direct physical … Continue Reading

Hurricane Sandy Business Interruption Claims Are Broadly Measured in New York

Hundreds of thousands of businesses are still struggling to repair the damages caused by Super Storm Sandy. In New York, claimants will be told that their policies only cover business income losses during the period of time that it would take a “reasonable business” to return to its pre loss operational performance and that repairs … Continue Reading

Property Damage or Actual Impairment of Access Is Not Necessarily Required To Recover Business Income Losses

The Port of New York and New Jersey is the third largest seaport in North America and the largest maritime cargo center on the East Coast. Many highly interdependent supply chain networks were disrupted during and after Hurricane Sandy. Although Port Authority employees worked extra shifts to resume its transportation and holding operations, many goods … Continue Reading

Possible “Triggers” for Business Interruption Coverage For Professional Service Companies In New York and New Jersey Affected by Hurricane Sandy

Catastrophes by definition cannot be felt in the imagination – they are only experienced as embodied in the sensation of the unimaginable. There is no doubt that the destruction caused by Hurricane Sandy was unimaginable. Life along the coast line of New York and New Jersey will never be the same, but as people and … Continue Reading

Hurricane Sandy’s Supply Chain Disruptions Will Be Significant and Complicated

The 2011 losses Japan and Thailand rippled through the oceans as many realized that our global economy had become highly interdependent and supply chain disruptions were costlier than ever anticipated. A few months ago, global insurers revamped their Contingent Business Income questionnaires and applications in an effort to understand how deeply interrelated and exposed their … Continue Reading