Archives: Commercial Insurance Claims

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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

Does My Business Have Insurance Coverage for Losses Attributed to the Zika Virus?

As most of you know, there is a spreading concern about the presence of the Zika virus in South Florida. In fact, the Centers for Disease Control and Prevention has issued travel warnings pertaining to the regions where the Zika virus has been confirmed. The first CDC travel advisory related to South Florida advised pregnant … Continue Reading

Court Holds Damages Consequential to Subcontractors Faulty Workmanship is an “Occurrence” and “Property Damage” Under Plain Language of Standard Form Commercial General Liability Policy

New Jersey has joined a growing number of jurisdictions in ruling that damages from a subcontractor’s faulty workmanship may trigger coverage under a Developer/General Contractor’s Commercial General Liability (“CGL”) policy. On August 4, 2016, the New Jersey Supreme Court rendered a unanimous decision affirming the Appellate Division’s holding that consequential damages stemming from a subcontractor’s … Continue Reading

9th Circuit to Interpret Meaning of “Direct Supplier” In Context of a Commercial Property Loss Claim

Commercial property insurance policies often include damages sustained by a “direct supplier.” As an example, an insured that sells motorcycles, might rely on a particular motor cycle part supplier to provide parts used in their motorcycles. If the motorcycle part supplier sustains a loss, it could impact the insured’s business.… 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

Commercial Marine Insurance and Depreciation on Engines

When Hurricanes hit, residential and commercial property are commonly considered when you think of the insurance losses. But in coastal states hurricanes can also have a devastating impact on commercial and recreational marine losses. As with residential and commercial property, you need to be sure you review and understand your boat’s insurance policy. It is … 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

Pair, Set and Match

A public adjuster recently asked me about a hotel that was under a specific brand and the contract to maintain the brand required the rooms and furniture to match. Following a loss, the insurance company has refused to pay for the portions of the physically undamaged property and the policyholder paid millions to match the … Continue Reading

Riot or Civil Commotion Coverage

After the events that unfolded in Ferguson, Missouri earlier this week, many business owners have been reviewing their commercial property insurance policies because their properties have been damaged or destroyed as a result of rioting, including looting, fire, vandalism, and other associated damage.… Continue Reading

Commercial General Liability Policies – Now Cyber Liability Stands Alone

There are changes occurring to the standard commercial general liability policy that all business owners should know of to make informed decisions when purchasing their insurance policy. The Insurance Services Office, Inc. (ISO) now requires, as of May 1, 2014, a new endorsement that excludes data breach liability. This endorsement , entitled “Exclusion-Access or Disclosure … Continue Reading

New York Federal Court Holds: Without “Direct Physical Damage” There is No Business Interruption Coverage Resulting from a Power Outage

At the end of April, the U.S. District Court for the Southern District of New York (S.D.N.Y.) held that an insured who suffered business interruption losses as a result of a Superstorm Sandy related power outage, were not covered as there was no “direct physical loss.”… Continue Reading

Business Interruption Coverage Found in Superstorm Sandy Case

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

New York Courts Recognize the Importance of Business Interruption Coverage to Policyholders Sustaining a Loss

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

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
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