The 2024 Atlantic hurricane season began on June 1, and TSR (Tropical Storm Risk) forecasts 17 to 25 named storms this year. In weathering these storms, many businesses will face property losses, often accompanied by business income losses. Most commercial property policies incorporate business interruption coverage and extra expense insurance. The complexity of a business interruption claim, however, combined with the disruption of cash flow to pay continuing expenses creates a difficult scenario for business owners in these situations.
In general, business interruption and extra expense losses may be covered when they are caused by physical loss or damage to covered property, other covered conditions such as damage to a “dependent business,” or an order of the civil authority, such as an evacuation order, as defined in the policy. There may also be limitations on coverage, such as for power loss occurring outside the covered property, among others.Continue Reading Preparing a Business Interruption Claim Best Practices
The Louisiana Insurance Commissioner has issued Rule 22 for Hurricane Ida which allows policyholders an opportunity to mediate disputes with underwriters for claims up to $50,000. This is a streamlined approach where each side submits a position paper and meets with an assigned mediator at no cost to the insured. Notice of this program and
Hurricane Ida brought strong winds, flooding, and mass destruction along the Louisiana coast. Although the Gulf South is no stranger to hard-hitting storms, each disaster brings a new set of obstacles for property owners and homeowners.
Piecing things back together following a natural disaster, such as Hurricane Ida, can be a time-consuming and stressful process for individuals and companies alike.