business interruption, Insurance

Hurricane Sandy business interruption claim denials could be all wet!

Hurricane Sandy business interruption claims are being denied!

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.

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business continuity, business interruption, disaster preparedness

Business continuity and disaster preparedness! (Reprint)

Hallmark Abstract Service New York Title Insurance

For those of us in the northeast who have been battered by Hurricane Sandy the topic of disaster preparedness and business continuity strikes very close to home!

First I’d like to send my sincerest hope that all who have endured this disaster are as unscathed as possible and that family and friends are safe and well.

While for some, myself included the power and heat have been slow to return, in the scheme of the unimaginable suffering being faced by some in the northeast this is certainly a small inconvenience to bear.

Back in August, 2012 I had attended a presentation on the topic of how businesses should prepare for a crisis that is outside of its control and one that could potentially shut their business down.

It could be a building that is inaccessible due to flooding or data that is unretrievable due to a power outage or, as with Hurricane Sandy, potentially both

In light of this most recent natural disaster I wanted to reprint the article and offer the power point presentation to anyone who would like to receive it. If you are interested you can simply email me at mhaltman@hallmarkabstractllc.com.

“How prepared is your business for an event that has the potential to shut you down, force a dislocation of key employees and/or potentially compromise your stored data?”

Recently I had the good fortune to attend a presentation given by a gentleman whose expertise fell in this area that most of us are aware needs to be addressed but that typically isn’t. It’s kind of the business equivalent of estate planning for individuals.

He spoke about crisis management, business continuity planning and information protection that is in essence contingency planning for some exogenous event that is beyond the control of a business, unforeseeable and that could be devastating to the ability to conduct operations.

It would be a plan that once implemented “will mitigate those risks and protect critical business functions, assets and information with fast, comprehensive emergency response a key component to recovery.”

This type of plan will of course vary from business to business and from industry to industry but the basic premise is the same. Maintaining some semblance of business as usual that will keep a going concern going!

An example that he used was a steam-pipe rupturing in the heart of mid-town Manhattan that caused the evacuation of office buildings in the general vicinity. It was an evacuation that would last for an undetermined amount of time.

For companies that were unprepared for this type of event the result would have been devastating with critical information unaccessible, employees and management dislocated and business basically coming to a standstill.

Contrast that to a company that had a plan in place, systems and information duplicated and stored offsite, key personnel knowing exactly where to go and the ability to at least maintain a necessary level of operations until either the crisis passed or further plans were developed and implemented.

Once again, if you are interested in receiving the power point presentation you can simply email me at mhaltman@hallmarkabstractllc.com.

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At Hallmark Abstract Service our value proposition is to deliver on what it is that our clients expect from us each and every time that they trust us with one of their valuable real estate transactions.

Service, attention to detail, fast turnaround times, willingness to go the extra mile and reasonable pricing on non-policy related fees are just some of the things we are focused on and that our clients have come to expect from us!

And that’s why we continue to earn their business, time and time again!

Call or email us today to set-up an appointment where we will come to your office, learn about the nuances of your practice and explain to you the way that we approach ours!

Mike Haltman, Owner

516.741.4723 (O)

Hallmark Abstract Service LLC

mhaltman@hallmarkabstractllc.com

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