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Contingent Business Interruption Coverage: Insuring the Far-Reaching Effects of Tropical Storm Harvey - Insurance Coverage

Insurance Coverage


Posted on: Sep 14, 2017

Manufacturers and producers are keenly aware of the value provided by business interruption coverage. Typically, this coverage is sold to companies as one of several coverages under their commercial property insurance package. Business interruption coverage is generally triggered by physical damage to a company asset (e.g., a manufacturing plant), which causes a suspension of business activities resulting in a loss of business income.

Tropical Storm Harvey has forced manufacturers and producers across Southeastern Texas to shut down operations while repairing their damaged facilities. These companies will turn to their business interruption carriers to recoup their business income lost during this period. However, for companies doing business in that region, but physically located outside the reach of Harvey, business interruption coverage may not protect them from lost profits caused by the storm.

Read the full article here.

This article was submitted by Ryan T. Leagre, Plews Shadley Racher & Braun LLP. If you would like to submit content or write an article for the Insurance Coverage Section, please email Kara Sikorski at ksikorski@indybar.org.

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