Commercial Insurance Claims

It’s already happening – business interruption claims are getting denied a mere three weeks after Super Storm Sandy ravaged the Northeast. Running a business is not an easy feat. Business owners paid premiums to protect their hard earned profits and getting a denial letter from an insurance company they’ve probably had for years may be harder to overcome than the hurricane itself. The culprit of all this despair – “your property did not sustain any direct physical loss or damage as a result of a covered peril.”


Continue Reading Businesses Interruption Coverage and Super Storm Sandy – A Misunderstood Relationship

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

I recently noted the importance of Contingent Business Income (CBI) coverage in Are Your Business Relationships Insured? – Understanding Business Interruption Claims. CBI coverage protects an insured from income losses caused by an interruption or slow-down in the operations of a “dependent business” (i.e., purchasers, suppliers, distributors or service providers). A Missouri jury understood the importance of this coverage, which I affectionately call “relationship insurance,” awarding $11 million in business income losses to a roofing material manufacturer that was affected by the shut down of its asphalt supplier.


Continue Reading Missouri Jury Awards $11 million in Contingent Business Income Case – Understanding Business Interruption Claims

Many businesses buy business interruption coverage to cover a loss of business income in the event of a covered loss. Business income provisions generally provide benefits for an amount of time designated in the policy, typically termed the period of restoration,1 or until the business is able to resume operations.


Continue Reading Commercial Property Insurance May Cover “Extra Expenses”

It is hard to measure property damage and business income losses when human lives have been taken during a loss or occurrence. I have deposed many property and casualty company adjusters and despite their sophistication and experience in this niche industry, they inevitably choke with emotion when they talk about their experience adjusting catastrophic claims like 9/11 and Hurricane Katrina, where many lives were lost – I always say you can take property out of a policy, but you can never take human out of the policy.


Continue Reading Tragedies are Difficult to Measure – Understanding Business Interruption Claims

When it comes to relationships, businesses are as vulnerable as people. Just like in our personal relationships, businesses depend on the performance and accountability of third parties. When relationships fail, it’s hard to get back out there. Many businesses rely on outside purchasers, suppliers and distributors on a daily basis. These relationships are often stable and reliable, but loyalties are swiftly destroyed if a partner suffers an unexpected loss or calamity and is unable to purchase, supply or distribute inventory. Unlike people, businesses can be less vulnerable by purchasing what I call “relationship insurance,” or Contingent Business Income coverage (CBI), which protects the “recipient business” from income losses caused by an interruption or slow-down in the operations of a “dependent business” (i.e., purchasers, suppliers or distributors).


Continue Reading Are Your Business Relationships Insured? – Understanding Business Interruption Claims

“In this business it takes time to be really good – and by that time, you are obsolete” – Cher


A recent article in the Insurance Journal magazine, “Industry Faces Cyber Risks in Shift from Tangible to Intangible Property,” highlights the urgent need for new underwriting products and guidelines to keep up with the constantly evolving technology changes.

Technology has moved so rapidly that not only the insurance industry, but also business in general, is now facing a sea change in the way all types of data, including personal and corporate information, is collected and stored. How well re/insurers deal with this new reality could well determine the industry’s future course.


Continue Reading Industry Cannot Keep Up With Cyber Perils – Understanding Business Interruption Claims

I am a news junkie – the type who’s interested in everything, but nothing at all. A few weeks ago, I was listening to the white noise of the usual talking heads, but the news station showed an interesting filler story that connected many dots in my overly informed brain. The reporter was proud to present a story about NASA’s latest and greatest technology to photograph solar flares and study the effects of these naturally occurring events, which can cause serious power and satellite disruptions, on the Earth’s electromagnetic field.

Continue Reading Space Weather- The Peril of The Future? – Understanding Business Interruption Claims