Commercial Insurance Claims

New York has joined New Jersey, Ohio, and Massachusetts with pending legislation regarding insurance coverage. At the same time, it is pretty obvious that the insurance industry is doing everything it can to explain how such legislation, if passed, would dwarf any ability to pay amounts claimed.
Continue Reading Coronavirus Insurance Coverage Update March 31—-New York Legislation, Chicago Restaurant and Theatre Lawsuit, and Insurance Industry Says Coverage Payments Would Dwarf Capacity to Pay

New Jersey started the coronavirus business insurance legislation, but just like a virus, it is spreading to other jurisdictions. Ohio and Massachusetts filed very similar bills to what was filed in the New Jersey Assembly.
Continue Reading Coronavirus Insurance Law Update March 26—Ohio and Massachusetts File Proposed Legislation Requiring Retroactive Removal of Virus Exclusion To Coronavirus Business Income and Civil Authority Claims

This morning’s post, Coronavirus Causing You Business Losses? Your Insurance could Provide Relief, is extremely important given the severity of the expected virus on business. Australian insurance professor Alan Manning recently wrote an excellent article on the topic. I have read numerous other articles and analysis of the issue. So, let’s start with the basics.
Continue Reading Is There Business Income Coverage For The Coronavirus?

Our client owns a large food market. Last summer, it burned down. The client submitted a claim under his business insurance policy from Farmers. The insurance policy included several different types of coverage, such as Business Property, Business Income, Extra Expense, and more. The insured had insufficient insurance limits under his Business Property to replace everything needed to reopen the market. Thus, he sought coverage for those items under Extra Expense coverage. By the plain and clear terms of the policy, these items were also covered under Extra Expense. But Farmers found an excuse to wrongfully deny the claim in a textbook example of how not to interpret and apply insurance policies in California.
Continue Reading Can Business Losses Be Covered Under Multiple Parts of Your Policy?

A New York court of appeals recently ruled that an insured’s claim for business interruption losses in excess of policy limits may proceed as the insured alleged the additional losses were the result of its insurers’ delay in payments.
Continue Reading Delay in Payment May Lead to Insurer’s Liability in Excess of Policy Limits

On Saturday October 12, 2019, several decks of upper floors of the Hard Rock Hotel & Casino under construction just off Canal Street in New Orleans suddenly collapsed. As emergency personnel were engaged in the immediate efforts to rescue and aid the crews working at the hotel site, the City of New Orleans was busy implementing its emergency response teams.
Continue Reading New Orleans Hard Rock Hotel & Casino Construction Collapse Triggers Time Element Coverages

A business interruption claim does not always end up in litigation. There are basic techniques that an insured may consider expediting and presenting a claim that may result in a fair resolution of a business interruption claim. The Business Interruption Book: Coverage, Claims, and Recovery,1 is a great source for information on business interruption issues and it provides a non-exclusive checklist to facilitate claims handling.
Continue Reading Business Interruption: Strategies for Resolution

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 Can My Business Recover Additional Income Loss If Code Upgrades Are Delaying the Time to Complete Repairs?

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 The Marcal Paper Fire: A Sad Demise to a New Jersey Landmark