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

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 an insurance claim. While their goal is to achieve the utmost recovery in the shortest period of time, the loss adjustment process can be long and grueling.
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 intended to protect the potential earnings of the insured business. Its purpose is “to do for the insured…just what the business itself would have done if no interruption had occurred—no more.”1
Continue Reading

In a Second Circuit decision, the court of appeals revived Madelaine Chocolate Novelties Inc.’s Superstorm Sandy claim against Chubb for property damage and business interruption for an additional $49 million in coverage. In overruling the lower court, the appellate court found that the lower federal court failed to properly evaluate all the relevant policy provisions.1
Continue Reading

As the Category 4 Hurricane Michael approached Florida, many areas evacuated in preparation for the storm. During a catastrophic event, such as Hurricane Michael, governmental authorities often order evacuation and prohibit access to certain areas due to public safety. The evacuation orders in Florida forced many businesses to shut down their operations until further notice. As a result, the businesses affected by the evacuation orders may bring a claim for business interruption claim under coverage provisions for Civil Authority.
Continue Reading

For the past few days, it’s been raining cats and dogs in New Jersey. Being stuck inside, I was scrolling through my social media feed and came across a video of multiple new cars being washed down what appeared to be a river from a car dealership. This led to a lively discussion on my reposting of the video as to whether the insurance company would pay for the loss of vehicles, which of course got me thinking, would this be a covered loss? What types of policies do car dealerships typically have?
Continue Reading

On August 22, 2013, a fire destroyed an office building where one tenant, Bernstein Liebhard LLP, was a mass tort law practice. The firm’s mass tort practice was shut down for a year. The insured law firm sued Sentinel Insurance Company Limited for $27 million arising from lost income from several hundred mass tort clients who failed to retain the firm during the 12-month period after the fire.
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 where the policyholder matched wits against the insurers—and recovered $58M in coverage for property damage and business interruption losses stemming from the breakdown and temporary shutdown of a faulty power generating turbine.
Continue Reading