Business Interruption Claims “Significant” After Sandy
Insurance Information Institute President Robert Hartwig reports businesses often have coverage for business interruption related to physical damages, which many firms in Long Island and other places hit by superstorm Sandy will need. Hartwig says Lower Manhattan businesses were about 90 percent covered by business interruption coverage following the 2001 terrorist attacks, but some firms seeking compensation for sales losses could be outside the directly impacted regions. Disruptions typically have to last 72 hours or more and losses are determined by how long it takes to resume normal operations. Smaller businesses tend to lack coverage, experts say, and other businesses that do have coverage are unsure of when they should file claims.