Many companies that thought they were covered for Hurricane Sandy business losses are now finding that their insurance company is telling them that their claims are all wet!
Isn’t that just like an insurance company? It reminds me of the Seinfeld episode where Jerry goes to pick up a rental car only ot find out there is no car:
“I know what a reservation is” “I dont think you do” “See you know how to take the reservation, but you just dont know how to hold the reservation. And essentially thats the most important part of the reservation, the holding.”
Change that to an insurance company when a policy holder files a claim that gets denied:
Agent: “I know what insurance is!”
Policy Holder: I don’t think you do. See you know how to write the policy and collect my premiums, but you just don’t know how to pay a claim! And essentially it is the paying of a claim that is the most important part of having insurance!”
The good news, however, for companies that have had claims denied, is that it might not be the end of the road.
In fact, in an article at the Property Insurance Company Law Blog titled ‘Business Interruption Claim Denials After Hurricane Sandy Abound in New York City‘ the case is made that ‘While it is true that most, if not all, commercial policies have flood exclusion provisions in the main property coverage section, most standard policies also contain additional coverages and endorsements that afford payment for business income losses despite the flood exclusion.’
Read the full article at the Property Insurance Company Law Blog here.