Business Interruption Insurance: Legal Strategies

Negotiating Coverage Before a Crisis Strikes and Maximizing Recovery After

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Recording of a 90-minute CLE webinar with Q&A

Conducted on Wednesday, February 6, 2008

Course Materials


The Southern California fires. Burst water pipes. Hurricanes Katrina and Rita. Hackers disabling a company's website. September 11. These dramatic and many more mundane events disrupt businesses and trigger devastating losses for companies around the country.

Many companies identify deficiencies and ambiguities in their insurance coverage for the first time during such a crisis. Business interruption insurance—for the loss of income due to severe property damage—has spawned much controversy and litigation.

For instance, United Air Lines surely did not foresee that its insurance policy language would not cover losses at its World Trade Center and Washington National Airport facilities. It learned the hard way—after losing its suit and a subsequent appeal against its insurer.

Listen as our panel of authoritative attorneys examines and analyzes the different business interruption coverages available and the legal issues arising both from catastrophic tragedies and the more mundane—and more common—events that could nonetheless cause costly disruptions in business operations.



  1. Recent litigation and contract disputes in time-element coverages
    1. Business interruption coverage
    2. Contingent business interruption coverage – property loss by key vendor/supplier
    3. Civil authority coverage – when the government denies access to property
  2. Negotiating coverage
    1. Understanding the connection between BI coverage and physical loss
    2. Provisions for coverage
    3. Coverage trigger enhancements
    4. Valuation provision
  3. Counseling the client – best practices for managing risk and recovery
    1. Policy review
    2. Fostering good communication between parties
    3. Understand risks and coverage before disaster strikes
    4. Mitigation


The panel reviewed these and other key questions: 

  • In managing the legal and business risks associated with loss of income, what coverages are available?
  • What are insurers paying with little argument, and what they are challenging or trying to exclude?
  • What are the most highly disputed areas between insurers and businesses filing claims for income interruptions?
  • What legal and practical issues arise in valuing claims in a crisis situation?


Barry S. Neuman
Barry S. Neuman
Carter Ledyard & Milburn

He focuses on commercial and environmental litigation. He represented the plaintiff in HMSHost Corporation v. Zurich...  |  Read More

Christopher S. Clemenson
Christopher S. Clemenson
Cozen O’Connor

His practice focuses on insurance coverage matters. He advises clients on first-party coverage issues, including claims...  |  Read More

Marshall Gilinsky
Marshall Gilinsky
Anderson Kill & Olick

He concentrates on assisting clients recover business interruption insurance coverage and damages arising out of...  |  Read More