In the wake of Harvey, Irma, Jose and Maria, the 2017 hurricaneseason is turning out to be one of the most catastrophic onrecord.

To maximize insurance recoveries, businesses that have sufferedproperty damage and business income loss will need both to actquickly and exercise long-term persistence. Key steps are outlinedbelow:

Mind your deadlines

Almost all types of insurance policies require prompt notice ofloss, and strict compliance with this condition to coverage can becritical. At this early juncture, however, policyholders should becautious in providing any specifics concerning the cause of lossuntil the policy has been reviewed and all facts have beenobtained. The cause of loss, in the immediate aftermath of a storm,can simply be listed as the storm itself or “the effects of” thestorm.

Related: 3 challenges with property claims

In addition to timely notice requirements, property policiestypically have several other time-sensitive requirements with whichsome states require strict compliance. Some examples include suitlimitation provisions and deadlines for submission of a sworn proofof loss, notice of intention to elect replacement cost coverage andto complete covered repairs.

Insurance policy identification and review

Private commercial property insurance policies and flood insurancepolicies issued through the National Flood Insurance Program aretypically the policies that will respond to most storm-relatedcommercial losses. While this article focuses primarily oncommercial property insurance coverage, many of the tips presentedhere apply equally to other potentially available types of propertyinsurance coverage.

Insurance policy review should include analyzing all potentiallyavailable coverages, including for repairs or replacement ofphysically damaged real and personal property, as well as coveragefor lost profits stemming from a slowdown or complete cessation ofyour business.

Coverage for lost profits and extra expenses you may incur toresume normal operations may be available to you whether or notyour business actually sustained physical damage. Civil authority,ingress/egress and contingent business interruption are just a fewexamples of such potentially available coverages.

Important coverage considerations include:

• whether the policies provide all risk and named perilcoverage;
• whether there are exclusions pertaining to flood or to stormsurge;
• how the policies define flood; and
• whether the policies contain anti-concurrent causationlanguage, which could bar coverage for a loss even if it is aresult of both covered and uncovered causes.

The review also should encompass the limits, sublimits and anydeductibles applicable to each potentially available coverage.Business interruption and extra expense limits and deductibles, forexample, may be stated in time, amount or both.

As a related issue, the number of “occurrences” produced by astorm can affect the amount of times that limits, sublimits anddeductibles are triggered. This may be significant as respectsHurricane Harvey, which made multiple landfalls over multiple days,potentially giving rise to arguments for the application ofmultiple “occurrences.” This can work to the benefit ofpolicyholders and insurance companies alike, depending on theamount of the loss at stake relative to the amount of applicablepolicy limits and deductibles.

Related: When it comes to wind-driven rain, storm damagecoverage is questionable

Many policies that provide flood coverage will sublimit it,meaning that less than full limits are available for lossesresulting from flood. Policies do not define flood uniformly, andthe manner in which your policy defines flood, and the case lawinterpreting that definition, may mean the difference betweencoverage and no coverage.

Preparation of the claim

Policyholders should promptly respond in writing to all reasonableinsurance company requests for information; however, policyholdersshould not rely on the insurance company to calculate the loss.Rather, policyholders should prepare, present and defend theirclaims to their insurance companies.

For large losses, policyholders should consider retaining aprofessional claim preparer or a public adjuster. Others typicallyneeded to round out the team include coverage counsel, forensicaccountants who specializes in business interruption losses, andpossibly structural or other engineers, architects and/orcontractors. The policy may provide coverage for certain members ofthe claim preparation team, typically subject to a sublimit.

Related: Top 5 property losses from HurricaneIrma

Policyholders should establish a program for regular updates toinsurance companies as to the status of the claim. They should alsokeep detailed notes of conversations with insurance companyrepresentatives, including meeting minutes. Where there are verbalagreements, policyholders should write letters confirming suchagreements and seek payment of advances for all proven andundisputed losses.

Diligent pursuit of insurance proceeds

Following a natural disaster such as Harvey, Irma, Jose or Maria,policyholders need to be diligent in pursuing insurance to helpthem quickly get back on their feet. Diligence in pursuinginsurance involves reviewing insurance policies for all availablecoverages, taking stock of notice provisions and key timelimitations, and taking steps to prepare, present and defend theclaim. Getting these first steps right will help policyholdersefficiently maximize their insurance recoveries following naturaldisasters.

Related: The trouble with property damage claims caused byrain

Dennis J. Artese ([email protected]) isa shareholder and Peter A. Halprin ([email protected])is an attorney in Anderson Kill’s insurance recovery group in NewYork. Opinions expressed are the authors' own.