Superstorm Sandy left over 1 million Con Ed customers without power for days, and in some cases weeks, due to the shut down of the power network.1 An area particularly hard hit was Lower Manhattan where many businesses where affected. As a consequence, many businesses suffered losses of business income giving rise to Business Interruption … Continue Reading
Those handling Superstorm Sandy claims have likely seen their fair share of business interruption losses. In the last month, there was a ruling from a New York state trial judge in favor of an automotive dealer for business interruption losses sustained due to Superstorm Sandy.1 The interesting holding of the case concerned whether a flood … Continue Reading
This past week I traveled to Reno, Nevada, (known as “The Biggest Little City in the World”), along with other attorneys from our firm, to attend an insurance claims practice seminar.… Continue Reading
The life of a business can depend on its insurance carrier doing the right thing and promptly paying damages sustained by it quickly and efficiently after a loss. This is the reason many business customers obtain business interruption coverage from their insurance carriers. New York Courts recognize the importance of business interruption coverage to policyholders … Continue Reading
Under New York law, certain coverage disputes may not prevent appraisal. You may have heard the general rule that issues involving coverage disputes under an insurance policy are purely legal issues that should not be determined by an appraisal panel. Appraisal in the property insurance context is meant to resolve a disagreement over the amount … Continue Reading
I spoke in Manhatten yesterday at the New York State Society of Certified Public Accountants. The presentation was Superstorm Sandy: Many Causes, Many Losses—Is Your Business Income Loss Covered? I bet you’d imagine that a nerdy insurance attorney presenting to nerdy accountants would seem to make for a very dry event.… Continue Reading
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
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
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
Many businesses in New York and New Jersey are still recovering from closure or slow down after Hurricane Sandy devastated the region. Insurance companies are issuing payments for business income losses under standardized formulas where recovery may look as follows:1… Continue Reading
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
On the night of October 29, 2012 the “kings of the hill” in New York knew that they would not be waking up to a City that Never Sleeps. In fact, the lights were out for weeks and the businesses that were at the top of the list – now have to make a brand … Continue Reading
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
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
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
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
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
The morning after Hurricane Sandy made landfall felt like the morning of 9/11. The unthinkable happened. The course of history changed, again.… Continue Reading
It’s already happening – business interruption claims are getting denied a mere three weeks after Super Storm Sandy ravaged the Northeast. Running a business is not an easy feat. Business owners paid premiums to protect their hard earned profits and getting a denial letter from an insurance company they’ve probably had for years may be … Continue Reading
It has been two weeks since the storm forced millions of businesses to shut down in one of the most densely populated areas of the nation. While many businesses have resumed operations, many others are still recovering.… Continue Reading
The destruction and devastation Hurricane Sandy left behind is disheartening. I have no doubt the greater New York City area will rise again- stronger than ever. Some news outlets have already reported that business interruption coverage may not be triggered for many commercial policyholders if the damage was caused by flood or storm surge.… Continue Reading
I recently noted the importance of Contingent Business Income (CBI) coverage in Are Your Business Relationships Insured? – Understanding Business Interruption Claims. CBI coverage protects an insured from income losses caused by an interruption or slow-down in the operations of a “dependent business” (i.e., purchasers, suppliers, distributors or service providers). A Missouri jury understood the … Continue Reading
Many businesses buy business interruption coverage to cover a loss of business income in the event of a covered loss. Business income provisions generally provide benefits for an amount of time designated in the policy, typically termed the period of restoration,1 or until the business is able to resume operations.… Continue Reading
It is hard to measure property damage and business income losses when human lives have been taken during a loss or occurrence. I have deposed many property and casualty company adjusters and despite their sophistication and experience in this niche industry, they inevitably choke with emotion when they talk about their experience adjusting catastrophic claims … Continue Reading