Lawyer

Business Income and Insurance Disputes

At the Glick & Grife Law Firm, we know that the very nature of business income insurance makes it likely that disputes will arise for major claims, and policyholders will have problems resolving them. And in Florida, where we have such destructive hurricanes as Katrina and Wilma, the stakes are higher. Not only can we lose more of our essential and valuable business equipment, but we can also lose large amounts of business income while the entire community is busy paddling, drying out, and rebuilding their own facilities.

Add to that the type of disaster suffered in New York on September 11, 2001, which created a legal hurricane that’s still ongoing, and the need for an experienced lawyer becomes starkly clear.

Business insurance will usually cover:

Theft
Vandalism
Wind damage
Rain damage if the rain entered through an area with wind damage
Fire

You can expect to receive insurance money for:

Emergency repairs, so as to avoid any further damage
Interruption of business and loss of income
Debris removal
Cash or replacement value of any damaged property, if your particular policy allows for it

Flood insurance

This is a separate thing. Policies are issued by the National Flood Insurance Program, which is administered by the Federal Emergency Management Administration (FEMA), and covers damage from:

Groundwater runoff
Tidal water
Overrunning lakes, creeks or rivers

For damage from these sources, you can expect to receive compensation for:

Repair or rebuilding of buildings
The cash value of any damaged or destroyed property
Debris removal

Many businesses have no flood insurance however, and some have filed suit to obtain flood damage compensation through their existing insurance policies, where fine print may exclude such compensation.

If you’ve suffered damage

If your business facility has been damaged and you’ve lost business income as a result, the first thing to do is notify your insurance company. Keep a record of this communication. This is very important for any future legal work that may have to be done. Record your phone conversation, or keep a copy of your letter or email.

The other most important thing is to able to show proof of your property ownership and of the damage done. You must be able to document everything you’re claiming compensation for.

Insurance delays

There probably aren’t many scenarios where an insurance company is prompt and glad to be paying out on a claim. If 30 days go by and you haven’t received any notification of a decision, it means either that they’re rejecting your claim, or they’re disputing it.

In this case, your best move will be to consult a lawyer, to get clear on what your rights are.

Uncertainty in the law

Hurricane damage law is in flux since Katrina, and a turning point of disputes is the doctrine of “efficient proximate cause”. In plain English, this says that if you’re insured for something like rain damage, but not for flood damage, you can claim for the flood damage, since the rain caused the flood. The Mississippi Attorney General has filed a suit based on this doctrine.

But this reasoning is disputed by those who say that if an insurance policy excludes a certain coverage, it usually does so in language that excludes it regardless of whatever might cause it.

But how is it determined exactly what caused your specific damage? Was it Katrina’s wind, for example? Or her rain? Or flood water? Or all three? And how much of your business income loss is attributable to any of these things?

You could have more than one insurance policy, each at different companies. Insurance companies will arrive at percentages, all calculated as much as possible in their own interests rather than yours.

How a business income insurance lawyer can help

An experienced business income attorney can:

Advise you on the concepts necessary for pursuing a claim for your business income loss
Provide guidance on which methods to use in backing up your claim
Help you to establish proof of your losses
Make sure you miss no filing deadlines
Take care of tedious paperwork

You need a lawyer who’s up to date on the most recent court decisions and appeals. We have the expertise and experience you need. Give us a call today, or email us for a free initial consultation in West Palm Beach, Boca Raton, and Fort Lauderdale, Florida.