First Party Property Damage, Business Interruption and Extra Expense Coverage


For decades, Anderson Kill has been a leader in helping corporations and other clients obtain full recoveries on large, complex claims for losses resulting from fires, explosions, floods, building collapses, construction accidents and other perils which have severely damaged their property and resulted in lost earnings. We carefully review our clients‘ coverages and the circumstances of their losses, and then advise our clients on how to aggressively pursue full recoveries. We work with our clients and their other representatives to try to achieve fair settlements, and if that is not possible we bring our considerable litigation experience to bear upon their claims.  We have helped our clients recover billions of dollars in property and business interruption losses, and extra expense. Where warranted, we have also successfully pursued bad faith damages and attorneys’ fees for our clients.

The following is a list of representative matters in which we have helped our clients to be made whole following catastrophic losses:

  • Wyndham Hotels – We represented this hospitality industry company and obtained summary judgment that coverage existed under property insurance coverage policy for extensive water damage to a Holiday Inn hotel in Pittsburgh, PA. 
  • Refinery fire claims We have represented several oil and petrochemical refineries in Texas, Louisiana, Oklahoma and Pennsylvania pursuing claims arising out of major fire losses. The claims involved property damage and business interruption loss. All were litigated and successfully settled before trial.
  • Building Collapse Claim – We represented a developer in an action to recover the pre-loss value of a building in Manhattan that collapsed just prior to a scheduled demolition. The case involved novel issues relating to property valuation.
  • Arson loss – We currently represent a developer in an action to recover for property damage and lost rents resulting from an arson fire at a residential high rise building under construction in New Jersey. The client prevailed on liability and the parties are now litigating damages and alleged insurer bad faith. The case also involves novel issues concerning the rights of a bank that is insured under the policy as a loss payee.
  • Five Star Hotels – We represented this hospitality industry company and obtained summary judgment that coverage existed under property insurance coverage policy for extensive water damage to a Holiday Inn hotel in Pittsburgh, PA.    
  • Large Chemical Manufacturing Company - We represented a company which manufactures, among other things, cleaning fluids for microchips in a London Arbitration seeking $50 million in contingent business interruption coverage.  The claim arose out of the destruction of the only factory in the world which manufactured a key component of the client’s product used to clean microchips.
  • Retail Brand Alliance See above.  After securing a favorable ruling in the U.S. District Court for the Southern District of New York on the assumptions to be used when calculating business interruption losses resulting from a catastrophe, the claims were settled.
  • Major Construction Contractor – We represented a major construction contractor in connection with a number of insurance coverage issues arising out of an explosion at a power plant while under construction in Connecticut.  The explosion resulted in property loss and related insurance claims totaling several hundred million dollars under an owner-controlled insurance program, and third-party claims against multiple defendants for wrongful death, physical and mental injury and property damage which are covered under a contractor-controlled insurance program and the defendants’ own liability coverage.  This matter raises novel, high stakes issues regarding the allocation of liability among multiple competing insurance programs and concerning the scope of coverage under builders risk insurance.
  • Cathedral of St. John the Divine – We represented the Cathedral in negotiations with, and litigation against, its insurer and reinsurer over coverage for a major fire which caused extensive damage to the Cathedral and its art works.  The case was successfully resolved allowing the Cathedral to undertake a $60 million restoration project.
  • City of Elmira – We represented the city in this case regarding an armory owned by the City of Elmira, NY. The case involved “ordinance or law” coverage, and AK succeeded through summary judgment and on appeal in recovering millions of dollars for the City for undamaged property that had to be replace because of a covered loss.
  • St. James Episcopal Church We represented the church in a dispute that involved insurance coverage for damage to the Church’s pipe organ during construction on surrounding areas of the Church which was settled favorably for the Church.
  • Magma Copper We represented this company seeking coverage for flood damage and successfully concluded a multi-million dollar settlement to pay for Magma’s flood damage first party property claim.
  • Diocese of Greensburg – We represented the Diocese and settled the majority of a major property insurance coverage claims relating to unexpected damage that caused the closure of a large school.  Following a settlement with various insurance companies, the Diocese won a multi-million dollar jury verdict against its third party administrator.
  • NYC Condominiums and Cooperatives – We have successfully resolved property insurance claims for fire and water damage on behalf of a number of condominiums and cooperatives in New York City, often without the need for litigation.  Anderson Kill has assisted boards of managers in navigating the claims process and determining the proper allocation of insurance recovery between the building’s insurance and the unit owners’ independent insurance. 
  • Biodiesel Manufacturing Plant – We represented the owners of a biodiesel manufacturing plant in connection with their recovery of property damage and business interruption losses resulting from a substantial fire at their Memphis, Tennessee plant.  We obtained a Court order confirming an appraisal award of over $24 million in favor of our client, and later obtained summary judgment for all unpaid amounts awarded in appraisal and additional business interruption amounts pursuant to the policies’ escalation clause, which was later upheld on appeal.  Additionally, our appeal to the New York Appellate Division, First Department revived the client’s bad faith and consequential damages claims, worth over $35 million.
  • NYC Real Estate Developer – We successfully resolved a multi-million dollar water damage and delay in opening claim involving the construction of a luxury mixed-use building located in mid-town Manhattan under a builder’s risk policy on behalf of a NYC real estate developer. 
  • Parapet Collapse – We represent a policyholder in litigation against its property insurance company seeking the costs to replace the parapet on its Bronx, New York building that collapsed as a result of hidden decay, costs to repair damages to covered property resulting from the collapse, and all resulting business interruption losses. 
  • Construction Installation Floater – We successfully resolved a multi-million dollar installation floater claim in litigation on behalf of a contractor involving the collapse of a sub-grade retaining wall constructed for a wastewater treatment plant.    
  • Attraction or “Leader” Property Claim – We represented a hotel company that suffered lost revenues due to damage to an important attraction property in the vicinity of several insured properties.  The case involved a novel area of business interruption insurance coverage that is not commonly invoked and almost never litigated.
  • Commercial Printing Equipment Breakdown – We represented a commercial printing company that suffered lost revenues when an industrial printer was damaged and interim repairs left the facility working at suboptimal capacity.  The case involved all-too-common arguments by the insurance company that initial repairs rectified the damage, despite evidence that operations of the industrial printing press and the entire business continued to be negatively impacted even after initial repairs were made.
  • Triumph Foods LLC – This start-up hog processor experienced property damage and business interruption losses resulting from the 2008 explosion at a facility in Missouri.  A key issue in the case was the measurement of business interruption losses for a business that had not commenced operations at the time of the loss.  Triumph Foods defeated motions on its measurement of damages and reached favorable settlements of its business interruption and soft cost claims.
  • TC Ravenswood (TC Energy) – This case involved a dispute concerning coverage for capacity revenue losses experienced by TC Ravenswood as a result of the breakdown of a steam turbine.  One of the central issues in the case was coverage for and the measurement of business interruption losses resulting from the breakdown.  TC Ravenswood won summary judgment on all substantive issues of coverage, including coverage for capacity revenue losses.  The trial court’s award of summary judgment was unanimously affirmed on appeal. 


A sampling of articles include:

Hidden Risks in Builders Risk and First Party Property Insurance,” Construction Executive

Breaking Down Business Interruption:  How Insurance Can and cannot Mitigate Coronavirus Losses,” Risk & Insurance

“Why New Jersey Companies May Have Frist-Party Property Insurance Coverage for Coronovirus Business Interruption and Disruption,” AK NJ Policyholder Alert

Closing the Deal on Property and Business Interruption Coverage Claims,” Risk Management Magazine

"Protecting the Lifeblood of Your Business - Its Income Stream: Insurance Coverage for Business Interruption Losses," AK Real Estate & Construction Advisor

"Business-Income-Coverage-A-Critical-and-Often-Overlooked-Area-of-Property-Insurance" FC&S Legal

"How-to-Recover-Business-Interruption-Losses" American Bar Association, Section of Litigation, Insurance Coverage Litigation

"Insurance-Coverage-for-Risks-Associated-with-the-Ebola-Outbreak" Risk Management

"Bring-Your-Insurance-Policy-to-the-Tailor-So-Your-Insurance-Company-Doesnt-Take-You-to-the-Cleaners" Insurance Coverage Law Report

"When-Far-Away-Problems-Hurt-your-Business-Look-to-Insurance" Focus (Industry News)

"Gulf-Oil-Spill-Insurance-Coverage-Issues-For-The-Hotel-And-Gaming-Industries" Anderson Kill White Paper