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First Party Property Damage, Business Interruption and Extra Expense Coverage

Overview

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:

  • 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.

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

Experience

  • Anderson Kill represented Meridia in an insurance coverage action against a number of insurers over coverage for a catastrophic arson fire loss to a large apartment complex during construction. The case was pending in New Jersey Superior Court, Union County. The plaintiff sought over $35 million in damages. The case involved novel issues concerning the interpretation of policy conditions and exclusions for alleged failure to maintain protective devices on a construction site, and the availability of consequential damages for alleged insurer delay in payment. The Anderson Kill team prevailed on summary judgment on the issues relating to protective devices, and the case settled in October 2023 after further discovery and motion practice on damages and other issues.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Events

Anderson Kill Presents “Insurance Coverage for Sexual Abuse & Harassment Claims”
  • Dennis J. Artese Carrie Maylor DiCanio Marshall Gilinsky Pamela D. Hans
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  • May 16, 2023
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Anderson Kill Presents “Insurance Coverage for Sexual Abuse Claims”
  • Dennis J. Artese Marshall Gilinsky Pamela D. Hans
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  • December 14, 2021
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Workplace Harassment and Discrimination Claims
  • Marshall Gilinsky
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  • April 28, 2021
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Statute of Limitations Waiver Legislation and Coverage for Abuse Claims-Lifting the Bar
  • March 5, 2020
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  • Loews Ventana Canyon Resort, 7000 N Resort Dr, Tucson, AZ
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What Insurance Brokers Need to Know About Insurance Coverage for Sex Abuse Claims
  • Robert D. Chesler Pamela D. Hans
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  • September 14, 2019
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  • APA Hotel Woodbridge, 120 Wood Avenue South, Iselin, NJ
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Property Losses – Making the Parties and Process Work for You
  • Pamela D. Hans
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  • September 14, 2014
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  • Winnipeg, MB
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Publications

THE ENVIRONMENTAL IMPACTS OF MAJOR HURRICANES: FROM SANDY TO IRMA
  • Law360
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STOP AND READ YOUR SLOWDOWN INSURANCE POLICY
  • Law360
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INSURANCE RECOVERY FOR BUSINESS INTERRUPTION & SLOWDOWN
  • Hospitality Lawyer's Converge
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INSURANCE COVERAGE FOR THE ECONOMIC AFTERSHOCKS OF RECENT JAPANESE EARTHQUAKES
  • White Paper - Anderson Kill
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MITIGATING BUSINESS INTERRUPTION EXPOSURES FROM CYBERATTACKS
  • Risk Management
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HURRICANE SANDY AND INSURANCE COVERAGE: WHAT TO DO BEFORE THE SILT SETTLES
  • Washington Business Journal Blog
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SANDY’S ENVIRONMENTAL IMPACTS: CLEANUP HAS JUST BEGUN
  • Law360
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HOW TO GET MORE FROM YOUR SUPERSTORM COVERAGE
  • CFO.com
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BRING YOUR INSURANCE POLICY TO THE TAILOR, SO YOUR INSURANCE COMPANY DOESN’T TAKE YOU TO THE CLEANERS
  • Insurance Coverage Law Report
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PREVENTING INSURANCE COMPANIES FROM WRONGFULLY DENYING STORM-RELATED CLAIMS
  • Risk Management
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STAYING COVERED IN WIND V. FLOOD PROPERTY INSURANCE DISPUTES
  • Risk Management
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SECURING INSURANCE RECOVERIES FOR HURRICANE SANDY PROPERTY AND BUSINESS INTERRUPTION COVERAGE CLAIMS
  • Westlaw Journal
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INSURANCE CLAIMS FOR SUPPLY CHAIN AFTERSHOCKS OF THE JAPANESE EARTHQUAKE AND TSUNAMI
  • Risk Management
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INSURANCE COVERAGE FOR BP OIL SPILL CLAIMS
  • Thomson Reuters
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INSURANCE RECOVERIES FOR THE GULF OIL DISASTER
  • Corporate Counsel
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INSURANCE COVERAGE FOR GULF OIL SPILL LOSSES
  • Risk Management
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News

Anderson Kill Shareholder Raymond A. Mascia Jr. Named a Rising Star in Insurance by Law360
  • July 7, 2020
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The Role of Insurance in Virus Fallout
  • February 19, 2020
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5 Tips For Policyholders To Clean Up After Winter Storms
  • January 27, 2015
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7th Circ. ‘Trigger’ Ruling May Up Risks For Property Insurers
  • December 4, 2014
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Ace Loses Deductible Fight Over Oil Terminal’s Sandy Damage
  • January 3, 2014
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New York Appeals Court Denies Summary Judgment to Auto Insurance Company, Opening Door to ‘Deceptive Acts and Practices Claims’ in Business-to-Business Disputes
  • October 19, 2012
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Insurer Must Pay Up In $7M Holiday Inn Flood Suit
  • March 28, 2011
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People

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Dennis J. Artese

Shareholder , New York

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Grant E. Brown

Attorney , New York

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Robert D. Chesler

Shareholder , Newark

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Marshall Gilinsky

Shareholder , Boston, Denver, New York

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Pamela D. Hans

Office Managing Shareholder , Philadelphia

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Finley T. Harckham

Shareholder , New York

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Fiona R. Hogan

Attorney , New York

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Jason Kosek

Attorney , New York

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Ethan W. Middlebrooks

Shareholder , New York

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Rhonda D. Orin

Office Managing Shareholder , Washington, DC

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Amy Weiss

Attorney , New York

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Key Contact(s)
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Marshall Gilinsky
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Finley T. Harckham
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© Copyright 2024 by Anderson Kill P.C.