3 Tips for Filing Hurricane Sandy Insurance Claims for Your Business

“Businesses with operations in the path of the storm may have suffered significant property damage and an interruption of business. Businesses nationwide—and even worldwide—also may have suffered contingent business interruption losses due to the inability to obtain supplies, among other things, from business in the Eastern United States that suffered direct physical property damage.” (Perkins Coie)

The East Coast continues to dig itself out from damages caused by Hurricane Sandy, the final cost of which is projected to be around $50 billion.

If your company was affected by the superstorm, your business insurance coverage should reimburse you for property damage, business interruption losses, and a variety of other expenses related to the disaster.

What to do first? Three things:

1. Review your policies:

“To begin with, it is crucial to obtain, review and evaluate all potentially applicable insurance policies for coverage. Understanding your rights and obligations requires a thorough review of the policies to determine what coverages may apply. Property insurance is the most obvious source of coverage, but do not overlook auto policies, marine cargo policies, pollution policies, and for those facing potential third-party claims, liability policies.” (Pillsbury)

2. State your claim:

“Most insurance policies require an insured to provide timely notice of potential claims. Some property policies, for example, require that businesses provide notice of a loss “as soon as practicable,” while others require notice “immediately.” Most property policies also require policyholders to submit “proofs of loss” arising from covered losses. Businesses, therefore, should collect and maintain records documenting their damage, lost revenues, and additional expenses and be sure to submit all required information as and when required by their insurance contracts.” (McCarter & English)

3. Document the damages:

“[B]usinesses should carefully document their damages and losses, including property damage, lost revenues, and additional expenses. If they do not already have protocols in place for tracking this information, companies immediately should put them into place and follow their protocols carefully. Because the way that a company characterizes these damages and losses can matter if an insurance dispute arises, companies should consider involving their legal departments and insurance counsel in preparing and implementing appropriate protocols.” (Gilbert LLP)

For more information on Hurricane Sandy and insurance claims, read:

You can find additional insurance law news on JD Supra>>