The recent Superstorm has left destruction along the Northeast corridor and many businesses have suffered losses that are likely covered by their First Party Property and their Business Interruption insurance coverage. A third type of coverage, which businesses sometimes overlook, is Contingent Business Interruption, which provides coverage when the policyholder suffers a drop in business due to effects of the hurricane on its customers or suppliers. Kelley Drye’s Insurance Recovery Group has outlined the steps that policyholders should follow and the types of coverage that are likely to apply, and describes the steps that policyholders should follow when analyzing coverage and protecting their rights. While insurers will frequently deny a valid claim due to the magnitude of Hurricane Sandy and the storm’s impact on the insurance industry, coverage can often be pursued through negotiations or litigation. The following Kelley Drye advisory outlines some general observations that policyholders should consider when assessing their coverage and steps businesses should consider taking the following steps in order to maximize their chances of recovery for losses due to Hurricane Sandy.
Click here to read Kelley Drye’s Advisory on this topic.