Obtaining Business Interruption Insurance Coverage Following Natural Disasters Like Irene and Sandy

After Hurricane Irene and Superstorm Sandy-caused extensive property damage to businesses in 2011 and 2012, commercial policyholders looked to their insurance policies to cover the losses they sustained. Of course, those policyholders whose properties suffered direct physical damage turned immediately to their property insurance, which covers physical loss or damage to buildings and business property. Most commercial policyholders, however, also have coverage under their property insurance policy for business interruption losses—that is, those losses arising from the disruption to or inability to continue normal business operations. Business interruption coverage protects the revenue that the policyholder would have earned had the loss event not occurred.