Business Interruption and First-Party Property Coverage After Hurricanes, Floods: Issues for Insurers and Insureds
Flood Exclusions, Concurrent Causation, Business Interruption Losses, and Off-Premises Coverage
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will discuss the unique commercial property insurance coverage issues that insurers and policyholders face when responding to claimed losses arising from natural disasters like hurricanes and floods. The panel will discuss the deductibles and exclusions that most often create coverage disputes and why, the differences between direct and contingent business interruption coverage, and controversies over business interruption coverage at the insured site and from off-premises damage. The program will offer best strategies for submitting and receiving claims based on lessons learned over the past decade.
- First-party property coverage
- Named storm deductibles and sub limits
- Storm damage vs. flooding
- Concurrent cause, efficient proximate cause, and anti-concurrent cause policy provisions
- Business interruption coverage
- Period of restoration: when it begins, ends, actual vs. theoretical time, extended period of indemnity
- Requirement of direct physical loss or damage
- Ordinance or law coverage and exclusions
- Actual v. anticipated post-loss market conditions
- Contingent business interruption and other additional coverages
- Contingent business interruption – damage/disruption to vendors, supply chains, dependent properties
- Off-Premises utility interruption coverage
- Civil authority interruptions
- Impairments to ingress and egress
The panel will review these and other key issues:
- How do courts treat flood and storm surge exclusions and "anti-concurrent causation" policy provisions?
- How will the specific business interruption policy language affect the appropriate "period of restoration" and the suitable location of the insured's business?
- How many “occurrences” of loss (and deductibles) arise from an event or series of events that occur over time?
- How do post-storm changes in the local or regional economy affect an individual insured’s business interruption claim?
- What constitutes a “supplier” for purposes of contingent business interruption coverage?
Nicholas M. Insua
Mr. Insua focuses his practice on insurance recovery litigation and counseling. He also represents clients in business... | Read More
Mr. Insua focuses his practice on insurance recovery litigation and counseling. He also represents clients in business disputes outside the insurance coverage context. Mr. Insua is also a member of the firm's COVID Task Group.Close
Raymond T. DeMeo
Robinson & Cole
Mr. DeMeo handles insurance litigation, including claims stemming from large-scale natural and man-made disasters. He... | Read More
Mr. DeMeo handles insurance litigation, including claims stemming from large-scale natural and man-made disasters. He has extensive experience with complex and high-exposure property and general liability insurance claims and litigation, including class action lawsuits, domestically and internationally. Before joining the firm Mr. DeMeo was Assistant Vice President and Managing Counsel at Travelers Property Casualty Company, where he oversaw all commercial property insurance litigation nationwide, including bad faith lawsuits arising from property insurance claims. He directly supervised the World Trade Center property insurance litigation and oversaw all litigation arising from Hurricane Katrina.Close