First-Party Property and Business Interruption Coverage After Hurricanes Harvey and Irma

Hurricane Harvey and similar weather-related disasters trigger unique commercial property insurance coverage issues.  Flooding and storm surge exclusions, along with "anti-concurrent causation" provisions, present hurdles for policyholders who suffer catastrophic losses.

Insureds not only incur business interruption losses due to physical damage at the insured location but may also sustain loss due to damage to off-premises businesses servicing the insured.

Off-premises losses may be covered by contingent business interruption insurance, which covers losses due to damage to insured's customers, suppliers and nearby flagship businesses.  The scope of such coverage may vary among policies.

Other business interruption losses can occur due to road closings, curfews and transportation shut downs mandated by civil authorities.

Our panel will discuss coverage disputes arising from natural disasters like Hurricane Harvey and Irma under commercial first-party property policies, including coverage for losses due to business interruptions at the insured site and off-premises damage causing loss for the insured.  The program will discuss steps that counsel to policyholders should take to prepare to file claims and considerations for insurers planning for a deluge of claims.