in short
Situation: On September 26, 2024, Hurricane Helen made landfall, leaving a trail of destruction from the coast of Florida to North Carolina, with total insured losses estimated in the tens of billions of dollars.
The result: Businesses in Florida, South Carolina, North Carolina, Georgia, Virginia, Tennessee, and various other states are recovering from significant property damage and business interruption losses.
Looking forward: Commercial policyholders affected by Hurricane Helen should be aware of various policy provisions that may apply, including, but not limited to, notice, proof of loss, and action limitation provisions. All insurance policies should be collected and reviewed.
As Hurricane Helen battered Florida, South Carolina, North Carolina, Georgia, Virginia, Tennessee, and various other states, businesses will soon need insurance for the significant property damage and loss of business revenue that remains in its wake. They will try to secure money. While the safety and security of those affected should remain the top priority, recent experiences with Hurricanes Katrina, Sandy, Harvey, Irma, Maria, Ida, and Ian have shown that commercial policyholders quickly and diligently pursue coverage. shows that you have the best chance of maximizing your insurance. Insurance recovery for hurricane-related losses. So, here are five tips for businesses to consider as they seek insurance for losses from Hurricane Helen and prepare for the remainder of the 2024 hurricane season.
1. Gather and review all insurance policies that may apply.
When seeking insurance for hurricane-related and other catastrophic losses, it is important to note that you may be insured under several different types of insurance contracts, including those outlined below. is. Therefore, policyholders should obtain and carefully review all insurance policies that may provide coverage, including policies that identify your company as an “additional insured.”
First Party Properties. Many businesses affected by Hurricane Helen will look to their property and casualty insurance under commercial insurance programs. Commercial property insurance goes by various names (e.g., “all-risk,” “inland marine,” or “multi-risk”) but generally covers physical damage or loss of use to business premises and other property. Provide compensation. Anything owned, leased, or otherwise controlled, stored, or controlled by the policyholder, such as inventory, equipment, or machinery.
Business interruption. Business interruption insurance is also commonly included in a company’s commercial property insurance program and is intended to protect a company from loss of business income incurred as a result of business interruption due to hurricanes or other covered perils. Masu. Business interruption coverage often requires the policyholder to withstand “physical loss or damage” to the insured property. This may include accidents that render the property uninhabitable or unsuitable for its intended use.
Accidental Business Interruptions. Accidental business interruption coverage similarly provides insurance against economic loss caused by disruption to a commercial policyholder’s customers or suppliers. It typically requires that the underlying cause of the loss to the customer or supplier be of the type covered in respect of the commercial policyholder’s property.
extra expense. Your insurance policy’s business interruption coverage may also provide insurance against “additional costs.” Extra expense coverage compensates a policyholder for costs in excess of normal operating expenses incurred to continue operating a business while the policyholder’s damaged property is repaired or replaced. Additional costs that are covered typically include replacement facility rental costs, travel and transportation costs, overtime wages, temporary labor, and advertising costs.
Service Interruption. Service Interruption Coverage provides insurance against property damage (such as perishable food damage) and loss of business income caused by interruption of utility services (electricity, gas, sewer, water, etc.) to the insured facility. I will. Service interruption coverage typically requires physical damage to utility property used by the policyholder, but in some cases, service interruption coverage requires that the damage occur within a specified distance of the policyholder’s own premises. It may also be a condition.
Scope of civil servants. Commercial real estate insurance policies cover business income that would be incurred if a “governing authority” prohibits or prevents access to the policyholder’s premises (such as evacuation orders, closing roads or public transportation, or imposing a curfew). often compensates for losses. Depending on its specific wording, the insurance contract’s “civil authority” coverage may or may not require that the access restriction be due to “physical loss,” in which case many “Physical loss” to the policyholder’s own property is not required. Given that federal, state, and local authorities have already taken many of the actions mentioned above in response to Hurricane Helen, “government entity” coverage will be limited to the associated income of affected businesses. This may be covered by insurance against losses.
Ingress/egress coverage. In addition to access restrictions imposed by government authorities, the physical damage caused by Hurricane Helen may itself limit access to your business. Access coverage provides insurance against loss of business income if access to and access to the insured facility is restricted or prevented due to physical damage that occurs near the insured facility (e.g., flooding, fallen trees, power lines, etc.) I will.
2. Comply with the terms of the Notice, Proof of Loss, and Litigation Limitation Policy in a timely manner.
Although specific notification requirements vary by insurance contract and applicable state law, failure by policyholders to meet these deadlines in a timely manner can unnecessarily complicate insurance claim recovery or worse. may argue that there are consequences for not meeting these deadlines in a timely manner. With deprivation of insurance money. Commercial insurance contracts typically contain two important notice requirements that policyholders should take care to meet. (i) First notification of the loss to the insurance company (usually “as soon as possible” according to the terms of the insurance contract). (ii) Submit a sworn “proof of loss” to the insurance company, often within 60 days of the event giving rise to the loss, or under certain state laws and specific policy terms; within 60 days of your request). In addition, certain commercial insurance policies require policyholders to initiate legal action against the insurance company within 12 or 24 months of the date of the loss.
Policyholders should therefore exercise caution, including promptly notifying them of losses under all applicable insurance policies. In addition to timing, policyholders may also be concerned about the method of notification, including whether it must be in writing, who must be notified, and what information must be provided in the first place. You must follow the instructions set out in your insurance contract.
Policyholders should also note that provisions specifying deadlines for filing a “proof of loss” or filing a lawsuit may be extended by written agreement only if the extension is to a certain date rather than indefinitely. There is a need. In fact, many insurers routinely agree to such extensions, as the submission of proof of loss similarly establishes deadlines for insurers to complete their own claims adjustments in many jurisdictions.
3. Document loss of property and business income.
Complete and accurate documentation of property and business income losses is essential to obtaining a full insurance refund. Therefore, policyholders should immediately begin producing detailed and contemporaneous records of all business property and income losses to support their claims. This should include photos and/or videos of damaged or destroyed property, equipment, and inventory, as well as corresponding invoices and estimates for their repair or replacement. Similarly, any communications evidencing loss of business income (such as canceled orders or events, or the impact of a hurricane on customers or suppliers) should be saved.
4. Document your claim reconciliation process.
Policyholders should similarly maintain complete written records of all claims-related communications with their insurance companies, including claims submitted, responses to requests for information, and conference calls held. There is. Policyholders should also be sure to document their insurance company’s inactions (missed deadlines, canceled meetings, late payments, etc.) as part of their claims correspondence with their insurance company. Doing so not only facilitates the claim adjustment process, but is often helpful to policyholders in subsequent insurance coverage litigation.
5. Assemble the appropriate insurance recovery team.
Many policyholders only interact with a single “loss adjuster” who represents the insurance company, but the loss adjuster is typically a behind-the-scenes consultant (forensic accountant, engineering/construction expert, etc.) supported by a larger network of Outside Attorney) is skilled at minimizing insurance claims. Policyholders are encouraged to marshal available in-house resources (e.g., business-savvy in-house risk managers and accountants), but in addition to experienced policyholder lawyers, external Early involvement of forensic accountants and public adjusters can help level the risk for policyholders. Ensure a competitive playing field by ensuring claims are properly prepared and presented based on available insurance and applicable law.
By persistently (and patiently) following the tips above, commercial policyholders can maximize their recovery for business losses incurred during Hurricane Helen and the remainder of the 2024 hurricane season. You will be able to do it.
Two important points
Experience from Hurricanes Katrina, Sandy, Harvey, Irma, Maria, Ida, and Ian shows that commercial insurance policyholders seek coverage quickly and diligently to maximize their chances of recovering hurricane-related losses. You can see that Policyholders should review all policies that may apply to them for coverage, including policies that identify their company as an “additional insured.”
Source link
