The destruction and devastation Hurricane Sandy left behind is disheartening. I have no doubt the greater New York City area will rise again- stronger than ever. Some news outlets have already reported that business interruption coverage may not be triggered for many commercial policyholders if the damage was caused by flood or storm surge.


Continue Reading Civil Authority Coverage Should Help Atlantic City Recover from Sandy – Understanding Business Interruption Claims

It is not unusual for government authorities (police, fire, city) to order an evacuation or prohibit access to a certain area due to public safety concerns when a natural disaster, riot or other life threatening event is imminent. When this occurs, businesses are forced to shut down their operations until further notice. If a business has purchased standard business income coverage (CP 00 30), it is likely that the policy also includes Civil Authority coverage for any business income losses caused by a government mandate.


Continue Reading Isaac May Trigger Civil Authority Coverage for Businesses in South Florida – Understanding Business Interruption Claims

Approximately 4,411 delegates and alternate delegates from all 50 states, the District of Columbia and five U.S. territories will attend the Republican National Convention from August 27 – August 30, 2012 in Tampa Bay, Florida. The convention will also host approximately 15,000 credentialed media, a press corps second only in size to this summer’s London Olympic Games. In total, the city is expecting over 50,000 visitors- managing this sudden invasion is a feat of its own. Federal and local authorities have already ordered certain road closures in anticipation of the event and many businesses will be affected by traffic re-routing and road closures.


Continue Reading Is Tampa Ready for the RNC – Understanding Business Interruption Claims

As of Friday, the National Interagency Fire Center reported that 19 wildfires have burned nearly 500,000 acres in states like Colorado, Nevada, Utah and Wyoming. Five additional large fires were reported in the states of Alaska, Arkansas, Arizona and Idaho.


Continue Reading Wildfires Continue to Rage in the Western U.S., with Fast-Moving Flames Forcing Evacuations, Engulfing Structures and Shutting Down Highways in Some States

It is not unusual for government authorities (police, fire, city, etc) to order an evacuation or prohibit access to a certain area due to public safety concerns when a natural disaster, riot or other life threatening event is imminent. When this occurs, businesses are forced to shut down their operations until further notice. If a business has purchased standard business income coverage (CP 00 30), it is likely that the policy also includes Civil Authority coverage for any business income losses caused by a government mandate. However, Civil Authority coverage is like playing the lottery, if your numbers don’t match, you lose.


Continue Reading The Nuances of Civil Authority Coverage – Understanding Business Interruption Claims

The recent wild fires in Reno, Nevada, caused tragic losses of many homes and extensive loss to business property and business income. Commercial property policies with business interruption coverage vary widely with regard to coverage of business income loss due to order of civil authorities.


Continue Reading Nevada Wildfires: Business Interruption Losses Caused By Order of Civil Authority

Civil Authority provisions normally provide coverage for business income losses when access to an insured premises is prohibited by a governmental action. This coverage, however, is not easily triggered, and it will also be subject to time restrictions.


Continue Reading Time Limitations for Civil Authority Coverage – Understanding Business Coverage, Part 77

Civil Authority provisions normally provide coverage for business income losses when action to an insured premise is prohibited by a governmental action. This coverage is not easily triggered, as many elements must be met to obtain the oft elusive benefits.


Continue Reading Louisiana Law Requires Causal Link Between Prior Property Damage and Civil Authority Action – Understanding Business Interruption Claims, Part 65

From time-to-time, governmental authorities prohibit access to certain areas after a catastrophic event, even though not all the buildings in the area were damaged. For example, after Hurricane Ike passed through the Houston area, Houston officials closed downtown Houston for several days to assess the damage. Another example is the evacuation of New Orleans after Hurricane Katrina. “Civil Authority” coverage protects against losses arising out of orders such as these.


Continue Reading Civil Authority and its Impact on Business Interruption Coverage in Texas