Perfect Storm Raises Coverage Questions♦ Corporations and Small- to Medium-Sized Businesses are still recovering and regrouping in the aftermath of Sandy.♦ The storm has forced many businesses to find answers to questions they never thought they would face.♦ Edwards Wildman attorneys Darlene Alt and Robert DiUbaldo recently discussed these new issues with Insurance Journal. For more insight, visit Edwards Wildman’s InsureReinsure blog.
Was Sandy a Hurricane or a Bad Storm? The Definition Matters♦ Fully understand how Sandy was categorized when it hit landfall in your area.♦ Several states – including New York, New Jersey and Connecticut – issued orders or guidelines post-Sandy that prevent insurers from imposing hurricane deductibles on claims. 3
Sandy: Key Coverages For Businesses♦ Contingent Business Interruption coverage protects businesses against lost income due to supply interruptions caused by physical damage to a supplier’s property.♦ Utility Interruption coverage protects businesses for income lost due to an electrical outage.♦ Lack of Ingress/Egress coverage includes losses sustained when you cannot get to or from the property because of blocked roads or other destruction.♦ Bottom line: Review policies carefully to understand what coverage exists for Sandy-related claims. 4