As they weather this year’s storm season, many businesses will experience property damage, often accompanied by business income losses. Most commercial general liability policies will provide business interruption coverage and extra expense insurance as an adjunct to property coverage. However, the complexity of a business interruption claim coupled with a pressing need for operating capital
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Commercial enterprises doing business in Texas and surrounding states are beginning their recovery from recent power outages and associated water damage. Many face significant property losses, often accompanied by business income losses due to a complete cessation of business activities. Many business owners had the foresight to purchase business interruption insurance; however, the complexity of a business interruption claim, coupled with demands on operating capital, creates a difficult scenario for business owners. Jones Walker is ready to assist clients in navigating this process, and we offer the following “golden rules” to provide some guidance in the preparation of business interruption insurance claims.
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Commercial enterprises doing business in Louisiana are beginning their recovery in the wake of Hurricane Laura. Many face catastrophic property losses, often accompanied by business income losses due to a complete cessation of business activities. Fortunately, many business owners have had the foresight to contract for business interruption insurance (also called “business income” insurance or time-element coverage). While having coverage offers some relief to affected businesses, the complexity of a business interruption claim coupled with a pressing need for operating capital creates a difficult scenario for business owners. Jones Walker is ready to assist clients in navigating this process, and we offer the following “golden rules” to provide some guidance in the preparation of business interruption insurance claims.
Continue Reading Golden Rules of Preparing a Business Interruption Claim
Has your business been affected by the current coronavirus crisis? Perhaps your clients, customers, and patrons stay at home, either because of a governmental order or just because they are afraid to mix with the public. Maybe your business itself has been ordered closed by authorities. Business owners wonder whether their insurance policies can provide any relief from these monetary losses.
Commercial property policies typically provide coverage for business interruption losses that result from “direct physical loss or damage” to the insured premises. Some policies also extend “civil authority coverage,” which provides coverage when access to a business is prohibited by governmental order due to physical damage within the vicinity (a specified radius from the premises), whether or not the business itself is damaged.
In light of the widespread effects of the coronavirus, there are several possible claims under business insurance policies that business owners should consider.
Commercial all-risk property policies and inland marine policies generally require direct physical loss or damage to the insured property as a prerequisite to business interruption coverage. Depending on policy language, there may be an argument that if the presence of the virus on the insured’s property renders the property unusable, the requirement for physical loss or damage may arguably be satisfied. On the other hand, if the use of the property is limited only because of the presence of the virus in the community, there generally would not be a physical loss or damage.