We hope your business did not sustain any direct property damage. Even if that’s the case, do not fail to consider that you may have insurance coverage for financial losses caused by the storm.
For example, you may have “Contingent Business Interruption” (CBI) insurance. CBI reimburses your financial losses (e.g., lost profits and extra expenses) resulting from an interruption of business at the premises of a third party with whom you do business, such as a supplier, distributor or customer.
Other coverage may also come into play where your property has not been directly damaged. Examples are:
- “Civil Authority” coverage (where access to property is prevented or restricted by a governmental directive);
- “Ingress/Egress” coverage (where access is prevented or restricted by a covered peril other than a governmental directive); and
- “Service Interruption” coverage (where losses and expenses are caused by an interruption of utility service).
Properly preparing, presenting and pursuing the claim with your insurer is key to achieving a prompt and favorable resolution. There are a number of steps that we strongly recommend be taken early on. If you’ve been involved with such claims before, then you know that the claim process typically is complicated, involving various legal and accounting issues, as well as potential pitfalls. And if your property unfortunately did sustain direct physical damage, there are even more things to consider and steps to be taken.