Commercial Property Damage in New York

Damage to a company property has the potential to detrimentally affect a business. There are many things that may happen to a commercial property that can interrupt business and cause it to shut down for a period of time. Insurance policies are in place to assist property owners during this time. Unfortunately, is often the case that insurance policies wish to cover little to none of the damage done to a property. This is why it is crucial to have an experienced attorney to help your case.

Commercial Property Insurance

Insurance policies exist so people can get back on their feet if their property is damaged. When a business is damaged, commercial property insurance should help the business recover. However, different policies have different “languages” that dictate what they are required to cover. Commercial property policies may have language concerning the following:

• Physical property damage
• Business interruptions
• Interim payroll coverage
• Loss of rents
• An extended period of protection against damages
• Loss of ingress or egress
• Extra expenses

Types of Damages

There are several things that may happen to a commercial property that may require filing a damage claim. When properties are damaged, it is important to conduct investigations of the destruction. Certain damages may include:

• Fire: With fire damages, it is important to understand the cause. If a property is completely destroyed, the cause of the fire may often be disputed as the owner may be accused of setting the fire for insurance money. When a property has partial losses, the grounds must be thoroughly examined to know the cost of the damages.
• Water/Flood: It is important to know that standard property insurance policies do not cover flood and water damages. There are certain exceptions to this. Certain commercial property owners are required to purchase additional flood insurance, while others are not required to do so, although it has the potential to protect a business.
• Wind/Storms: Because water damage is not often covered, it can sometimes affect wind damages as well. Some exceptions may be if a property is damaged by wind-driven rain or water through intrusion (broken window, damaged roof/siding).
• Theft/Vandalism: When a business owner faces this, they must have documentation of all valuable items to their business in order to prove they existed before they were stolen. Another issue to be aware of is the coverage limit to ensure an owner’s policy covers the value of the business’ property.

Business Interruption Coverage

Some insurance policies offer a certain type of coverage if a company has to close its doors in order to recover. The coverage is also sometimes known as business income protection, profit protection, and out-of-business coverage. This makes up the difference between a company’s normal income and its income during/after it is forced. If a company does not have an income at the time, insurance may also help to cover rent, utilities, taxes, loans, and more. 

There are some requirements to meet in order for a commercial property to be covered by business interruption. These may include:

• There must be physical damage to the property
• The property has to be where business takes place
• The damage must be covered under “peril”
• The “peril” must have caused interruption of the business
• The loss must be caused by the shutdown

Contact our Firm

If you or someone you know has experienced property damages and are seeking experienced legal counsel, contact The Law Office of Craig A. Blumberg today.

The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.