The Texas Lawbook
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Hurricane Beryl : How to Maximize Your Company ’ s Insurance for a Faster Recovery
JULY 12 , 2024 | BY VINCE MORGAN & SUZANNE DAY
After a large storm , companies and other large organizations often face significant property damage , power outages , physical access issues and resulting business interruption losses . A key step in recovering from a hurricane involves accessing insurance . Many insureds have questions such as : Are we covered ? How do we prepare our claim ? What if we suffered because our customers or suppliers were impacted ? Are governmental funds available to aid our recovery ? These and other issues are crucial to accelerating and maximizing the recovery process , starting with these key issues :
1 . Protect People and Property
Protecting your people is the first priority . Protecting property is next , and any emergency measures should be documented .
2 . Gather All Insurance Policies
Businesses must carefully review all potentially applicable insurance policies . That starts with gathering them . Property insurance is the most obvious source of coverage , but do not overlook other policies , such as auto or pollution . Besides your company ’ s own policies , also look for coverage from other sources , such as what is required by contracts with suppliers .
3 . Assess All Potential Coverages
What coverages apply ? What are the limits , deductibles and waiting periods ? What conditions apply ? If a loss triggers multiple coverages , does the policy allow stacking ? These and other questions must be answered before you assert coverage positions . The policy is the starting point , but it is also crucial to know how courts interpret that language .
Commercial property policies usually cover physical losses and resulting economic impacts . Flood is often covered , but sometimes with sublimits or through an ensuing loss provision . Coverage may apply even if the insured ’ s own property was not physically damaged . For example , your financial losses incurred due to damage to suppliers or customers may be covered as “ contingent business interruption .” Similarly , disruption of power and other utilities may trigger service interruption coverage . Curfews , orders and physical obstructions may trigger civil authority or ingress / egress coverage .
4 . Notify Insurers
Even if you have not yet identified all your losses , notify any insurance company you might seek coverage from . Do not assume there is no coverage . Verify it . And a notice is just a notice — it simply tells your insurance company that you might have a claim . It does not need to be particularly detailed at first , so there is no reason to delay . The policies will tell you what is required — just follow the instructions , and remember they vary in terms of what is needed , along with how and when it is to be communicated . Some carriers require an email , while others use a web portal . Certain coverages , such as pollution , have noticeably short timelines , sometimes only hours or days .