Insurance Coverage For The Ripple Effect From The Japanese Earthquake And Tsunami


Although the disastrous Japanese earthquake and tsunami thankfully had very little physical impact on the United States, many companies here will suffer serious economic consequences in the weeks and months to come.

Damage to Japanese manufacturing facilities, roads, railroads and ports will result in unfulfilled orders for products and component parts, leaving some American companies to scramble to find alternate suppliers, and to pay higher prices. Other corporations here will lose access to markets in Japan. Many companies have insurance coverage for their lost profits resulting from such disasters, even when there is no damage to their own property. This coverage is called contingent business interruption and contingent extra expense insurance, and is commonly included in commercial property policies. These types of insurance can be very valuable in times like these, but the coverage is narrowly defined and may be subject to sublimits.

For further information, please contact:

Finley T. Harckham at or (212) 278-1543


  • Finley T. Harckham, "Insurance Coverage for the Ripple Effect From the Japanese Tsunami," AKO Policyholder Advisor (March/April 2011) and Westlaw Journal (formerly Andrews Litigation Reporter) (March 25, 2011)
  • Robert M. Horkovich and Finley T. Harckham, “Insurance Claims for Supply Chain Aftershocks of the Japanese Earthquake and Tsunami,” Risk Management and AKO’s Policyholder Advisor Alert (March 2011)

News Items:

  • Robert M. Horkovich quoted in Business Insurance story on March 28, 2011 "Quake creates claims concerns: Business interruption coverage depends on Japan policy specifics"
  • Finley T. Harckham quoted in The Wall Street Journal story on March 16, 2011 “Insurers May Face 'Far-Reaching' Claims As Supply Chain Breaks” [Subscription Required]
  • Finley T. Harckham quoted in story on March 16, 2011 “Japan's Tragedy A Reminder of Need for Business Interruption Insurance”
  • Finley T. Harckham quoted in Best Wire story on March 16, 2011 “Japan Earthquake Causes Business Temblors Worldwide” [Subscription Required]
  • Finley T. Harckham appeared as a featured guest on BestDay’s Audio on March 15. 2011 to discuss how the Japan quake/tsunami may trigger contingent business interruption claims with U.S. companies. Click this link to listen “Attorney Finley Harkham on Interruption Claims from Japan Earthquake” [Subscription Required]
  • John G. Nevius quoted in Insurance Law360 story on March 14, 2011 “Insurers Likely To Avoid Japanese Nuclear Claims”
  • Finley T. Harckham, “Far From the Earthquake, Insurance Claims May Be Triggered,” LexisNexis' Insurance Law Center (March 11, 2011)

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Business Interruption Insurance Attorney | Anderson Kill P.C.
Finley T. Harckham
New York

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