Callahan & Blaine

A recent blog post by an expert in insurance risk management and claims points out some potential business insurance nightmares that could be caused by oil from the Gulf Coast oil spill polluting up and down the Atlantic coastline.

First party claims for direct loss or damage to property

Business and property owners whose property is damaged or destroyed by oil (even oil brought inland by hurricanes) may try to claim the damage with their insurance companies. However, most commercial property insurance does not cover pollution related losses unless specified in the policy – and specified causes are generally related to causes happening on the insureds property.

Business income and extra expense claims

While an incalculable number of businesses will be adversely affected by the oil spill, Business Income and Extra Expense claims require loss of covered property. See the previous section.

Business interruption insurance claims

Many business owners will be shocked to discover that their business interruption insurance doesn’t cover them unless they suffer a loss of their physical property. Those who do have covered BI claims may be limited in the amount they can claim if the policy doesn’t cover the time it takes for the owner to clean up the property.

Widespread denial of coverage in the wake of this disaster could potentially drive thousands of Gulf Coast businesses into bankruptcy. What lessons can Orange County, California businesses take from the Gulf Coast oil spill?

Read your business insurance policies very carefully before signing on the dotted line. And if your claim is denied for any reason, call an attorney who is experienced in successfully fighting insurance denial of coverage cases.

The lawyers at Callahan & Blaine, California’s premier litigation firm, specialize in insurance denial of claims cases like the ones described above. In a similar denial of insurance case, Callahan & Blaine lawyers were able to attain coverage for denied insurance claims after the Northridge earthquakes in California.

When you call Callahan & Blaine, we will utilize our insurance expertise to maximize the insurance proceeds available to our business clients. Contact us to discuss your insurance denial of claim case today.