On March 31, 2020, six Northern California Bay Area counties significantly limited construction activity. These orders will result in thousands of construction projects shutting down until at least May 3, 2020. What impact does this have on existing property insurance claims? The answer: a lot, and they will probably result in significant legal disputes.
Continue Reading California Bay Area Shuts Down Construction – How Does This Affect an Ongoing Business Claim?

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?

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 Period of Restoration – Should the time to adjust the claim be considered? Part II

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 Period of Restoration – Valuing Business Interruption Claims, Part I

Business interruption coverage provides protection against loss of income when a business suffers property damage from an insured peril (e.g., fire, water loss) that interrupts the operation of the business.1 A typical business interruption policy form provides that the insurer will pay the actual loss of business income the insured sustains during the necessary suspension of its operations during the “period of restoration.”2
Continue Reading Business Interruption Claims – Calculating The Period of Restoration

Merlin Law Group attorney Corey Harris asked me, “do you know of a case that stands for the proposition that when estimating the period of restoration, do you consider the amount of time needed for adjustment of the claim?” My quick response was “with any construction project, financing of the project is a time element needed for consideration. If the insurance is supposed to pay for the financing as most insurance companies promise, then it should be a consideration. I think we wrote about this in our property insurance blog.”


Continue Reading Adjustment Time and Wrongful Denial Considered in Period of Restoration

Builders risk policies for large projects can be complex and the scope of loss stemming from them can be difficult to measure. But what if a loss causes damage to property that pushes back the date of completion for the project? There could be coverage under the delay in completion policy form or endorsement.


Continue Reading Delay In Completion Losses Under A Builders Risk Policy

Under New York law, certain coverage disputes may not prevent appraisal. You may have heard the general rule that issues involving coverage disputes under an insurance policy are purely legal issues that should not be determined by an appraisal panel. Appraisal in the property insurance context is meant to resolve a disagreement over the amount of loss for which the insurance carrier is responsible. This seemingly clear rule becomes murky when the parties disagree on its application to the facts of the loss at hand.


Continue Reading Certain Coverage Disputes Under New York Law May Not Prevent An Appraisal Demand

Hundreds of thousands of businesses are still struggling to repair the damages caused by Super Storm Sandy. In New York, claimants will be told that their policies only cover business income losses during the period of time that it would take a “reasonable business” to return to its pre loss operational performance and that repairs shouldn’t take this long. The measuring stick in New York, however, is not as rigid and it considers the actual facts and circumstances that affect the rebuilding or repair efforts.


Continue Reading Hurricane Sandy Business Interruption Claims Are Broadly Measured in New York

Business interruption claims are typically evaluated in two phases. Claim professionals will first determine the period of indemnity (a.k.a., period of restoration) and then measure the loss of income by reviewing the business’ income and expense trends and future projection charts.


Continue Reading Discredit Makeup, Offsets and Residual Values Claims with a Precise Measurement of Income Loss – Understanding Business Interruption Claims