Property, Fire, Business Interruption

Our insurance attorney in will tell you that First-party property coverage policies generally provide coverage for “direct physical loss of or damage to property.” These policies provide coverage for loss caused by specific risks including fire, explosions and natural catastrophes such as hurricanes, floods and wind. Traditionally, property policies covered losses to tangible property, including buildings, fixtures, inventory and permanently installed machinery and equipment. Supplemental coverages include debris removal, increased cost of construction, newly acquired or constructed property, valuable papers and records, electronic data and pollutant cleanup and removal. While the property part of the policy indemnifies the insured for the value of the covered property that has been damaged, the business interruption portion of the policy provides coverage for income that is lost when, as a result of the damaged property, the insured’s business is disrupted. Such cover is usually limited to the time period the property is being repaired or replaced. Some policies also include coverage for contingent business income. This cover is triggered when an insured suffers an economic loss either caused by a supplier’s inability to deliver goods to the insured by reason of damage to its property due to an insured peril; or when a customer cannot accept the insured’s products as a result of damage to the customer’s property.

Numerous coverage issues arise under first-party property policies including whether the insured has an “insurable interest” in the property; whether the damaged property is “property” as defined in the policy; the sue and labor clause; replacement value; coverage for restoration; extended period of indemnity; application of the flood, terrorist, earthquake and civil disturbance exclusions; trigger of coverage; loss payee and other insurance clause.

Our practice encompasses the full spectrum of property insurance coverage issues and disputes. We have prosecuted and defended claims involving major commercial property damage and business interruption losses, product and inventory losses, and disputes relating to the scope of coverage and exclusions and have compiled a library of Virginia, Maryland and District of Columbia cases on these issues. We also have experience assisting clients in investigating and resolving business income, contingent business income, and extra expense claims.

Contact Schleifman Law an Insurance Attorney for Legal Advice about Property and Fire Business Interruption at 703.528.1021