Keys to Successful Property Insurance Recoveries Following Harvey, Irma, Jose and Maria

In the wake of Harvey, Irma, Jose and Maria, the 2017 hurricane season is turning out to be one of the most catastrophic on record. To maximize insurance recoveries, businesses that have suffered property damage and business income loss will need both to act quickly and exercise long-term persistence. Key steps are outlined below.

Mind Your Deadlines

Almost all types of insurance policies require prompt notice of loss, and strict compliance with this condition to coverage can be critical. At this early juncture, however, policyholders should be cautious in providing any specifics concerning the cause of loss until the policy has been reviewed and all facts have been obtained. The cause of loss, in the immediate aftermath of a storm, can simply be listed as the storm itself or “the effects of” the storm.

In addition to timely notice requirements, property policies typically have several other time-sensitive requirements with which some states require strict compliance. Some examples include suit limitation provisions and deadlines for submission of a sworn proof of loss, notice of intention to elect replacement cost coverage and to complete covered repairs.

Insurance Policy Identification and Review

Private commercial property insurance policies and flood insurance policies issued through the National Flood Insurance Program are typically the policies that will respond to most storm-related commercial losses. While this article focuses primarily on commercial property insurance coverage, many of the tips presented here apply equally to other potentially available types of property insurance coverage.

Insurance policy review should include analyzing all potentially available coverages, including for repairs or replacement of physically damaged real and personal property, as well as coverage for lost profits stemming from a slowdown or complete cessation of your business. Coverage for lost profits and extra expenses you may incur to resume normal operations may be available to you whether or not your business actually sustained physical damage. Civil authority, ingress/egress and contingent business interruption are just a few examples of such potentially available coverages. Important coverage considerations include whether the policies provide all risk and named peril coverage, whether there are exclusions pertaining to flood or to storm surge, how the policies define flood, and whether the policies contain anti-concurrent causation language, which could bar coverage for a loss even if it is a result of both covered and uncovered causes.