Business Interruption coverage protects the potential earnings of the insured business while its operations are suspended as a result of damage caused by a covered peril. The period of restoration has a direct effect on the actual loss suffered. A typical definition in most ISO forms of the “period of restoration” is:… Continue Reading
On January 30, 2019, New Jersey residents suffered a tremendous loss. Marcal Paper, in Elmwood Park, New Jersey on the edge of Route 80, burned to the ground. Along with it, 80 years of a family owned business, jobs, community, and an iconic sign that lit up Route 80 were lost.… Continue Reading
We see many commercial insurance claims denied because the insured did not maintain a particular “protective safeguard” required by the policy. For example, a policy may require burglar alarms, and exclude coverage for theft if alarms are not working at the time of a loss. Or, a policy may require fire sprinklers, and exclude coverage … Continue Reading
A very insightful reader posted this comment to my blog post, Period of Restoration-Valuing Business Interruption Claims, Part I: When adjusting business interruption claims, I find that the biggest disagreements I have with carriers are not with the length of the restoration period. They’re with my projected revenues had no loss occurred.… Continue Reading
The effort to mitigate the damage, gather supporting documents, and present an insurance claim, can for many policyholders prove to be the toughest part of the recovery process. After suffering a loss or business interruption, the main priority of most business owners is restoring their businesses or premises as soon as possible – not preparing … Continue Reading
After every major flood event, I am contacted by at least one business owner and/or condominium owner who suffered flood damage, filed their claim with their NFIP1 Flood Insurance Company (Allstate, Hartford, Wright Flood, Farmers, FEMA, etc.), and was then told by either the flood insurance company or adjuster that the flood insurance policy did … Continue Reading
Business interruption coverage is very valuable to many policyholders in the wake of Hurricane Michael. Florida business owners may seek coverage under their commercial insurance policies for business interruption, which indemnifies them for lost earnings and expenses if their businesses are partially or totally interrupted as a result of Hurricane Michael. Business interruption coverage is … Continue Reading
On June 12, 2018, the Office of the Commissioner of Insurance of Puerto Rico (OCI) issued Ruling Letter No. CN-2018-241-D, Appraisal Procedures for Insurance Claims for Commercial Property Related to Catastrophic Events.… Continue Reading
It’s the stuff that dreams are made of. Humphrey Bogart delivers this memorable line at the end of The Maltese Falcon, summing up the allure of the shady characters’ search for the eponymous, elusive relic. Pro-policyholder case law can be equally elusive, especially when unsettled areas of insurance law, like coverage for cyber losses, are … Continue Reading
As Hawaii’s Kilauea volcano continues to erupt, homeowners and businesses face an ongoing threat to their properties. In addition to potential property damage, businesses also have the risk of their business operations being interrupted as the result of loss to their property.… Continue Reading
Most restaurant and bar owners purchase coverage for property damage and third-party liability. But there are other important coverages that might be overlooked, or might not be purchased, that could be critical to the operation and viability of the business. Here are some basic coverages we think anyone in the restaurant industry, or readers adjusting … Continue Reading
Never meet the enemy on their own terms. This memorable line from Rudolph Mate’s classic western, The Violent Men, motivates the hero, an embattled ranch owner, as he matches wits and brute force against a ruthless, greedy land baron. The hero’s struggle reminded me of the coverage showdown in National Union Fire Ins. Co. v. TransCanada,1 … Continue Reading
Chip Merlin, Ashley Harris and I settled an Equipment Breakdown Coverage (aka Mechanical Breakdown Coverage) lawsuit in New Jersey yesterday. Chip Merlin took this picture of Ashley and me after the settlement. While the settlement is confidential, there are a number of lessons to be learned and reasons why this coverage is so important to … Continue Reading
When is a warehouse not a warehouse? When it is a temporary storage trailer parked outside a warehouse, according to the 2nd Circuit Court of Appeals in LaptopPlaza Inc. v. Starr Indemnity & Liability.1… Continue Reading
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
In an unpublished decision, the Ninth Circuit Court of Appeals recently used extrinsic evidence to interpret the meaning of “direct supplier” in the context of a commercial property loss.1 I previously blogged about this case in 9th Circuit to Interpret Meaning of “Direct Supplier” In Context of a Commercial Property Loss Claim.… Continue Reading
A recent federal district court decision in New Jersey once again highlights why policyholders need to review their insurance policies with professional insurance brokers to ensure the insurance obtained satisfies their needs. Often, insurance policies contain “additional” or “optional” coverages that, for a small amount of money, can extend insurance coverage to circumstances that would … Continue Reading
Often a homeowner’s damages are not the result of a storm event, but rather the result of defective construction. In such situations, the homeowner will often pursue an action against the general contractor or subcontractor for various claims, such as negligence or breach of implied warranty of habitability. Ultimately, the question becomes whether the contractor … Continue Reading
In unpublished decision, the Ninth Circuit Court of Appeals recently denied an accounting firm’s appeal relating to a claim for coverage triggered by an email scam that caused the firm to mistakenly send wire transfers of client funds to fraudsters.… Continue Reading
When a catastrophe occurs and a golf course sustains direct physical loss or damage, there may also be an associated loss of use and interruption to its business. As with any loss, when analyzing coverage, the first thing is to make sure that the property is listed as a covered premises in the policy.… Continue Reading
Business interruption coverage provides protection against loss of income when a business suffers property damage from an insured peril (e.g., fire, water loss) that interrupts the operation of the business.1 A typical business interruption policy form provides that the insurer will pay the actual loss of business income the insured sustains during the necessary suspension … Continue Reading
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
Whether construction defects are occurrences under Commercial General Liability (“CGL”) insurance policies is an issue that has been highly litigated in recent years. A review of cases from various states discloses that courts have been divided both in the way they decide and analyze this issue.… Continue Reading
Whether defective workmanship is an occurrence in a CGL policy was recently addressed by the Eighth Circuit Court of Appeals in Decker Plastics, Inc. v. West Bend Mutual Insurance Company.1… Continue Reading
