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 Expense Coverage. Many of our posts have given insight and case evaluations about Extra Expense claims:


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

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 revenue for shut-down stateside restaurants.

In this case, BBB Service Company, Inc., an owner of several of the popular Wendy’s Old Fashioned Hamburgers restaurants in Florida and Georgia, sued for breach of contract and bad faith arising out of the loss of business income due to shutting down their Broward County restaurants.


Continue Reading Dodged the Storm but Loss of Business Income is Still Covered

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 during the storm. However, the law firm made a claim under its commercial insurance policy for loss of business income and extra expense as the office building was without power from October 29, 2012 through November 3, 2012. During that time period, there was no electricity or elevator service in the building.


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

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 Superstorm Sandy: Many Causes, Many Losses—Is Your Business Income Loss Covered ?

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

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

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 the insured premises. Given the mandatory evacuation orders issued by the governors of New York, Delaware, New Jersey and Connecticut, insurance companies should evaluate potential coverage for business income losses under these additional coverage provisions.


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

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 Securing Proper Recovery for Hurricane Sandy Business Interruption Losses

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, fire, flood, explosion and wind are among the most prevalent. Some of these perils may or may not be covered by an insurance policy, but if an insured property sustained damages caused by at least one covered peril, business income claims should not be denied.


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

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 new start of it.


Continue Reading There is Coverage for Business Income Losses Caused by Power Outages During Hurricane Sandy