Reviewed August 6, 2020
Summary: Regardless of the name of the hurricane or where it makes landfall, insurance coverage—or lack thereof—is one of the most critical items to be examined. The fallout from Hurricane Katrina and the standard flood exclusion in homeowners led to national attention and many lawsuits. The issue of wind versus water became a household topic. FEMA was widely criticized for the handling of the situation, and the National Flood Insurance Program was left with a debt of $17.5 billion.
When Hurricane Harvey ravaged Texas, the issues rose again. This time there were more political issues as the NFIP already owed $24.6 billion to the Treasury which is considered unpayable. Hurricane Harvey could push the debt to the $30 billion borrowing limit.
Currently the University of Colorado is predicting twenty-four named storms, the second most on record. We are already up to a storm named Isaias, the earliest we've reached that letter in the season. Another fifteen storms are predicted, ten predicted to be hurricanes and five expected to reach at least category 3. For the sake of comparison the thirty-year average is thirteen named storms, seven hurricanes and three major hurricanes.
In most of the coastal states, damage caused by windstorm will be covered by the various states' windstorm or beach pools. Flood-related damage will fall to FEMA and its National Flood Insurance Program. But, how do the standard homeowners policies or commercial property policies apply in this situation? What about business interruption and other consequential losses? How is debris removal to be paid for, and how are property policy deductibles to be applied?
These and other questions routinely surface during hurricane season as property owners and business owners affected by storms try to sort through the aftermath. This article by the FC&S staff will try to answer the coverage questions.
Topics:
The Texas Department of Insurance issued several bulletins in the last several days encouraging insurers to be lenient with its insureds. One is a recommendation to suspend any vacancy provisions in the policy as people have been displaced temporarily. The suspension is recommended only if the insured is temporarily displaced due to the storm, and has not moved permanently prior to the storm. If claims are denied due to wind losses, carriers are advised to notify policyholders of possible coverage under the Texas Windstorm Insurance Association (TWIA) if the loss occurred in a TWIA area.
Carriers and adjusters are reminded that insureds are allowed to use the repair company of their choice, and that claims should be handled in good faith. Also, carriers are allowed to grant exceptions to rates, rating classifications and underwriting rules for applicants impacted by an extraordinary event such as a hurricane. Carriers are encouraged to accept verbal, instead of written requests from insureds.
The Department considers it inappropriate for carriers to re-rate, cancel, nonrenew or refuse to provide coverage solely based on an insured's being impacted by Hurricane Harvey. Commercial vehicles used in relief efforts should not be re-rated or re-classed, cancelled or nonrenewed based on use in those relief efforts.
The Department allows the authorization of nonresident and emergency adjusters to handle claims. Bulletin #B-0011-17 is extensive in its reminders of what adjusters can cannot do; licensed adjusters cannot assess roofs if they are also a roofing contractor or provides roofing products. Public adjusters must be licensed by the department and are not allowed to solicit clients or participate directly or indirectly in the reconstruction, repair or restoration of damaged property. The full text of bulletins can be found on the department website. http://www.tdi.texas.gov/bulletins/index.html
|Homeowners Coverage
Some homeowners, particularly those in a high-risk area, may find they have three policies in force—a standard homeowners policy that covers all but hurricane damage, a windstorm policy that covers damage caused by a hurricane, and a flood policy that covers tidal overflow or the runoff of surface water from the torrents of rain. In other states with a coastal exposure, windstorm pools (also referred to as beach plans) offer windstorm coverage. Binding authority is normally suspended within a certain timeframe when any named storm is approaching.
Not all windstorm coverage is the same, so in any area offering this coverage the policy should be reviewed. Windstorm deductibles vary by state. A South Carolina policy, for instance, offers a choice of deductibles ranging from 1 percent of the limit of liability as shown on the declarations page, but no less than $250 nor more than $25,000; to 10 percent but no less than $5,000 nor more than $250,000. The deductible is, however, applied separately to each dwelling, each other structure, and personal property in each dwelling or other structure on the policy.
Under Florida law, hurricane deductibles are applied on a calendar year basis. If multiple hurricanes occur in one calendar year, the deductible amount must be fulfilled only once by the homeowner. The Louisiana hurricane deductible, however, applies in full to each and every hurricane.
There is no coverage for trees, plants, shrubs, or lawns for damage caused by wind under these policies. But if a tree is blown onto a dwelling, causing damage, then the cost to remove the tree should be covered as part of the cost of repair. Unlike standard homeowners forms, there is typically coverage for debris removal of covered property only. Since trees are not covered property, there is no coverage to remove them if they simply blow over and do not damage covered property.
Coverage for ordinance or law varies by state; read the policy carefully.
And of course, not all damage in the course of a hurricane is wind-related. Much damage results from the large amounts of rain and the ensuing flooding. Although windstorm policies cover damage to personal property caused by rain entering a dwelling when the roof has blown off, they will not cover damage caused by water flowing under a door. That is the province of the National Flood Insurance Program. However, there is a thirty-day waiting period for new applications (they become effective at 12:01 A.M local time on the thirtieth calendar day after the application date and the presentment of premium, which must accompany application).
There is often damage caused by a blackout, even when there is no direct physical damage caused by a hurricane. Some of the damage is insurable; other damage is not.
Damage to a building—in this case, a home—is unlikely simply because of a blackout. It is possible for a consequential loss to occur, such as a burglary because an alarm system did not function. A loss such as this should be covered. Although the standard homeowners forms exclude coverage for loss resulting from power failure off premises, the exception is that if the failure results in an insured peril, that ensuing loss is covered. Although the alarm did not function to warn the homeowner or authorities that a burglary was in process, the actual cause of loss is burglary—not power failure.
However, there is a situation that could arise for the homeowner that may involve some property damage. Say, during the blackout, there are severe thunderstorms and water run-off that would normally cause a sump pump to operate; but in this case, the pump fails. Is there coverage for sump pump failure caused by a power outage? There is if the insured has purchased water back up and sump overflow coverage. The power outage exclusion, as previously mentioned, gives back coverage for an insured peril on the insured premises. Purchasing sump coverage effectively means the insured has purchased an additional peril, and so the loss from the inoperable sump pump would be covered.
Damage to personal property could well occur. Lack of air conditioning and the resulting increase in heat and humidity could affect some personal property. Some artwork is particularly susceptible to dampness in the atmosphere. There is no coverage for this unless the artwork is scheduled. Of particular concern is the rapid growth of mold. There is no coverage for loss resulting from mold that grows because air conditioning units are not functioning. Again, damage from power failure occurring away from the insured premises is not covered unless the failure results in a covered cause of loss. Mold is not a covered cause of loss unless it is in itself the result of a covered cause of loss. That is not the case here.
Food spoilage will impact many people. Some standard homeowners forms automatically provide an amount of coverage, usually $500. Other forms do not cover food spoilage unless it is added by endorsement. Bottom line, many people will not have coverage for this loss.
The next items of personal property that could be damaged are those that sustain a power surge when power is restored. Although standard homeowners forms cover loss from artificially generated electrical current, the forms add that damage to electronic circuitry or components that are part of electronic apparatus (home computers, appliances, etc.) is not covered. And, although computer coverage is available by endorsement, two endorsements examined each excluded loss caused by off premises power failure.
The issue of additional living expense may also be raised. Suppose an insured with severe asthma was driven from the home by the heat and lack of air-conditioning and drove 100 miles to a city not affected by the blackout, incurring hotel expenses. Would this qualify for reimbursement under the homeowners form? As additional living expense is triggered by damage to the insured premises, no coverage would be available.
Autos certainly do get damaged when hurricanes sweep through an area. Vehicles can be damaged by wind, water, and collapsing structures. So, how does the auto policy respond to the damage?
The standard personal auto policy pays for direct and accidental loss to the covered auto or any nonowned auto (a defined term), including their equipment. There is no question that a hurricane and its effects cause direct and accidental loss to autos. The important thing is for the insured to have the proper coverage on the auto. For example, if the insured purchased only collision coverage and the auto was damaged by wind or flood, the insured would have no coverage for the damage to his auto. Faced with the fact that living in a hurricane-prone area is likely to result in wind and water damage to the covered auto, the insured should purchase other than collision coverage as well as collision coverage.
This advice applies to autos owned by the named insured as well as to autos not owned by the named insured, but in his custody or being operated by him—for example, a rental car. Many people fly south on vacation and then rent cars for use on a short term basis. The standard personal auto policy provides physical damage coverage for the rental car, but again, the insured must have purchased the appropriate coverage under his auto policy, namely collision coverage and other than collision coverage.
If an insured's car is damaged and cannot be driven, the personal auto policy will also respond to that type of loss. Temporary transportation expenses incurred by the insured in the event of a loss to a covered auto are paid, without application of a deductible. So, if the insured's car is wrapped around a tree by a hurricane, the auto policy will pay the costs of renting a temporary substitute auto; the standard coverage does not exceed $20 per day for the substitute auto, up to a maximum of $600, but some insurance companies may offer higher amounts.
If the insured (prehurricane) has rented a car for his vacation, he has most probably signed a contract whereby he will be legally responsible for loss to and loss of use of that rented car. The standard auto policy provides coverage for the loss of use expenses involved. For example, if the car rental company claims it has lost revenue due to the loss of use of its car, and the insured is legally responsible for that lost revenue, the auto policy will pay that claim. However, the most the policy will pay for any expenses for loss of use is $20 per day (again, some insurers may offer a higher amount).
The insured should also be aware that the transportation expenses are paid only after the covered auto or the rented auto is withdrawn from use for more than a certain period of time—usually twenty-four hours.
The standard auto policy, like any other insurance policy, has exclusions that may affect coverage for a loss caused by a hurricane. For example, if the insured drives away from the expected storm and the car breaks down, mechanical breakdown is not a covered cause of loss. Or, if the insured owns a motor home or a camper body but it is not shown on the declarations page of the auto policy, and hurricane winds severely damage the motor home or camper, loss to such vehicles is not covered by the auto policy. Or, if the hurricane damages custom furnishings or equipment that the insured has in his pickup truck, these items are excluded from coverage under the auto policy. So, the insured should read the exclusions that are on the auto policy to be aware of the losses that are not covered.
One final note on the personal auto policy. One of the duties of the insured after a loss is to take reasonable steps to protect the covered auto or nonowned auto and their equipment from further loss. If, for example, a hurricane damaged the insured's car or rented car and the car is immobile, the insured should have the car towed to prevent further loss, whether it may be loss by theft or another hurricane. The insurer will pay reasonable expenses incurred by the insured to prevent another loss.
The business auto policy, like the personal auto policy, provides physical damage coverage for loss to covered autos. This would include loss caused by windstorms and floods.
As with the personal auto policy, the insured has to choose what type of coverages he wants. The choices are comprehensive (any cause except collision), specified causes of loss (only those causes of loss that are listed), and collision. To adequately counter against loss by hurricane damage, the insured should have both comprehensive coverage and collision coverage; but at the very least, the insured should have specified causes of loss coverage since that coverage includes loss due to windstorm and flood.
Unlike the personal auto policy, the business auto policy requires the insured to choose what type of auto is to be covered. The business auto policy has symbols to designate covered autos, such as symbol 1 is "any auto," symbol 2 is "owned autos only," symbol 8 is "hired autos only," and symbol 9 is "nonowned autos only." For the business insured to have proper auto coverage, he must use the correct symbol. For example, if the insured has owned autos only and would never rent a car or use nonowned autos in his business, symbol 2 should be used to designate the covered autos. If the insured chooses symbol 2, rents a car for his business purposes, and a hurricane damages that rented car, the business auto policy would not provide coverage for the damage.
The business auto policy does provide towing coverage. If a hurricane damages the covered auto and the insured wants the car towed, the business auto policy will pay for the tow. However, the amount paid for the tow is limited to the amount that the insured has chosen on the declarations page, and the coverage is only for a private passenger type car. For example, if the insured has a Chevrolet Cavalier and a truck on his business auto policy and both vehicles are damaged by hurricane winds, the auto policy will pay for towing the Cavalier but not the truck. Some insurers may offer towing coverage for all the insured's vehicles, but the standard policy does not.
The business auto policy provides transportation expenses similar to the personal auto policy, but with a certain limitation. The personal auto policy provides transportation expenses coverage if the loss to the covered auto is caused by such things as windstorm or water; the business auto policy provides such coverage only for theft of a covered auto. So, hurricane damage does not mean that the business auto policy will pay for temporary transportation expenses incurred by the insured.
On the other hand, the business auto policy will pay for the expenses for which an insured becomes legally responsible to pay for loss of use of a rented vehicle. It makes no difference if the loss is caused by theft or hurricane—if the insured has those types of coverages indicated on the declarations page, the business auto policy will pay the loss of use expenses. The insured still has to be legally responsible to pay the expenses, but the loss will be paid.
As with the personal auto policy, the coverages offered by the business auto policy are limited by certain exclusions. There is no exclusion for hurricane damage, but the policy will not pay for loss to tapes or discs or certain electronic equipment. If hurricane winds or hurricane-driven water destroy a covered auto and tapes or discs that the insured had in the auto, the business auto policy will cover the loss to the car but not the loss to the equipment. Individual auto policies may have their own unique exclusions and insureds need to be aware of what their policies will not cover.
There is one more thing that insureds with business auto policies should know. The auto policy has a deductible that applies for each covered auto. Hurricanes can damage many autos at the same time. The auto policy will pay for the damage done to each auto, but the listed deductible will be applied to each auto and not be applied on a per occurrence basis. For example, if the insured has five autos listed as covered autos on a business auto policy with a $500 deductible applying to each of those cars, and a hurricane sweeps in and damages all five cars, the deductible will be applied to each car. It will not be just one $500 deductible applied overall because there was damage caused by just one hurricane; recovery for each auto will be reduced by each auto's own deductible. This will leave the insured paying a larger portion of the loss than he might have first thought.
Hurricanes could produce property losses that may or may not be covered under the provisions of the current version of the ISO Building and Personal Property Coverage form (BPP). The BPP promises to pay for "direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss." Of course this promise is subject to the limitations and exclusions contained elsewhere in the policy.
A standard feature of property insurance forms is the coverage for direct physical loss of or damage to covered property caused by or resulting from windstorm.
The windstorm or hail clause found in the covered causes of loss section of the basic and broad forms of the ISO CP policies covers windstorm or hail but excludes "loss or damage to the interior of any building or structure, or the property inside the building or structure, caused by rain, snow, sand or dust, whether driven by wind or not, unless the building or structure first sustains wind or hail damage to its roof or walls through which the rain, snow, sand or dust enters."
A common type of claim reached by this exclusion is water damage to walls, ceilings, or personal property that occurs during a windstorm but for which there is no apparent source. Sometimes this type of damage results from seepage around window casings or eaves that are of adequate soundness for ordinary weather but not for hurricanes or similarly violent happenings.
Another consideration for windstorm coverage is the possible application of percentage deductibles that apply only to the windstorm or hurricane peril. ISO provides a Windstorm or Hail Percentage Deductible endorsement, CP 03 21, that modifies the application of the deductible so that a percentage deductible—1, 2, or 5 percent—applies to loss caused directly or indirectly by windstorm or hail. If loss from a covered weather condition occurs, and that loss would not have occurred but for the windstorm or hail, then that loss is considered to have been caused by windstorm or hail and the windstorm or hail deductible applies. Coverage may be on either a specific basis—for example, each building under a separate limit of insurance; or blanket—such as building and personal property in that building under a single limit of insurance.
ISO provides clear examples of how to apply the deductible and states that it is to be based upon the insured value of the building. However, company-specific forms may not be so precise. For instance, we received a question from an FC&S subscriber whose insured received a double dose of damage from both Charley and Frances in 2004. The insured's policy contained a per coverage, per item deductible in lieu of per occurrence with no definition of what constituted an item or a coverage, and a 2 percent wind deductible that offered no information on how it would be applied if losses occurred at more than one location under blanket coverage. In this situation, we determined that the policy was not clear and was possibly subject to legal interpretation.
The subscriber's question brought another question to light—are different storms considered separate events with separate deductibles and limits? While we determined that they are, some insurers may view damage to the same area of a building caused by different storms as continued damage from the first storm. Individual policies should be consulted to conclude how the storms should be viewed.
Windstorm or hurricane coverage may not be available to commercial insureds in certain coastal areas. These insureds may be able to turn to Beach or Windstorm plans that are offered in several states, including Florida and Louisiana .
Windstorm is not the only cause of loss associated with a hurricane. Hurricane Katrina focused the public eye on damage from flooding. Flood is an excluded peril under most commercial property forms, but coverage for eligible properties may be purchased through the National Flood Insurance Program. However, there is a thirty-day waiting period for new applications (they become effective at 12:01 A.M local time on the thirtieth calendar day after the application date and the presentment of premium, which must accompany application). An insured that waits until a hurricane is in the ocean will not be protected from that storm by a newly purchased flood policy. It is important to note that the NFIP coverage does not include provision for business interruption losses. So, if a business is affected solely by flood waters and not by actual windstorm, business income insurance may not be available.
Other losses may result from power outages. In the Special Causes of Loss form, CP 10 30, one exclusion states that the policy does not cover loss or damage caused by "the failure of power, communication, water or other utility service supplied to the described premises, however caused, if the failure…originates away from the described premises…or…originates at the described premises, but only if such failure involves equipment used to supply the utility service to the described premises from a source away from the described premises." The failure includes lack of sufficient capacity and reduction in supply. This would appear to apply to any loss of commercial property covered by the standard CP form.
The form gives back coverage for any loss or damage that results from a covered peril. If a fire starts in a business when the power goes out, any damage done by that fire would be covered.
Electronic equipment is especially susceptible to loss under these circumstances. Power that goes out quickly may damage circuits and other electronic equipment. Such equipment may also be damaged when the power is restored. The CP policy will not extend coverage to these types of losses.
It is also possible that businesses such as restaurants and grocery stores might suffer loss to perishables if their refrigerators quit. These losses are indirect or consequential and are covered only if the insured has purchased the appropriate endorsement.
A commercial property insured may purchase an endorsement to cover exposure to loss from an off-premises power failure, CP 04 17, Utility Services—Direct Damage. This endorsement covers the CP insured's property in case a specified utility service suffers direct damage from a covered peril. The endorsement allows the insured to specify a sublimit of personal property coverage for this peril or to choose to have the entire limit subject to this peril. The addition of the endorsement does not increase the limit of liability for the covered property.
It is important to note that coverage may vary greatly from policy to policy and this information is based on standard wording found in ISO policies.
The operations of businesses may be interrupted by hurricanes and resulting flooding, and many of these businesses will be turning to their insurance carriers with business income insurance claims.
Business income insurance involves two aspects of loss: a suspension of business and a resulting loss of business income. One, without the other, will not result in a covered claim. In addition, typical business income (business interruption) coverage is triggered by a suspension of business that is caused by direct physical damage to or loss of property at the premises described in the policy. The damage must be caused by a covered cause of loss. While hurricane (windstorm) typically is a covered cause of loss, flood typically is not.
In general, insurance forms also include additional coverages that address specific loss situations, such as when a governmental entity shuts down premises or when computer operations are interrupted. A prime example of such loss situations is the closing of roads and bridges, as well as forced evacuations of areas that lay in the path of the hurricanes.
The issue of what constitutes "direct physical damage or loss" and whether this damage is caused by a covered cause of loss lies at the heart of all such coverage analysis. There is little doubt that hurricanes cause substantial direct physical damage, and coverage is available as long as windstorm is a covered peril on the insured company's business income policy. The direct physical damage would have to happen on the insured's premises in order for a business's primary business income coverage to be triggered. However, auxiliary coverages—such as contingent business income or action of civil authority—may be triggered as long as the hurricane causes physical damage somewhere away from the premises, if the insured business operations are adversely impacted by the off-site damages.
The typical business income deductible is stated in terms of hours of interruption. The business suspension must last longer than the deductible in order for coverage to be available.
A potential issue may arise if flood is deemed the primary cause of business interruption to a property that is not damaged by wind. That may cause questions of fact as to whether the flood—or the originating hurricane—caused the business interruption. Likewise, if power outages, windstorm, and flooding all converge to cause a suspension of business, finders of fact may question whether the suspension should be covered by business income insurance or not. The details of a given situation may have to be studied to determine whether coverage is triggered or not. But, if windstorm can to any extent be determined as the cause of the suspension, coverage should be triggered.
These items are general considerations, but different types of insurance policies address the prospect of business income losses in various ways. The most broadly used forms (the ISO forms) are discussed in this context. Suffice it to say that if a company does not carry windstorm as a covered peril, business income coverage would not be available.
BOP policies typically are used to address the insurance needs of small businesses. The current ISO BOP form provides property insurance on a special form perils basis. Business income insurance is built into the coverage form.
The covered causes of loss that are insured on the form are risks of physical loss unless they are excluded or limited in the form. However, some exclusions may affect the availability of business income coverage.
The BOP Utility Services exclusion does not cover loss or damage caused by "the failure of power, communication, water or other utility service supplied to the described premises, however caused, if the failure…originates away from the described premises…or…originates at the described premises, but only if such failure involves equipment used to supply the utility service to the described premises from a source away from the described premises." The failure includes lack of sufficient capacity and reduction in supply. This exclusion does not apply to loss or damage to "computer(s)" and "electronic data."
Since the exclusion states that there is no coverage if the power failure originates away from the described premises, a problem could arise if, for example, a business lost power (but was otherwise undamaged by the hurricane) because the hurricane knocked out transmission lines that were not on the insured's premises. However, if the windstorm caused damage to, say, a transformer on the described premises, the exclusion would not apply and coverage could be available.
The BOP includes two auxiliary business income coverage grants that should also be reviewed. These are for business income losses arising from the action of a civil authority and for business income losses arising from dependent properties.
In order for this coverage to be triggered, the insured must actually incur a loss of business income because civil authority prohibits access to the described (insured) premises. The coverage grant requires there be direct physical loss of or damage to property away from the insured premises as the result of a covered cause of loss.
The forced evacuation of certain areas and the closing of highways and bridges that lay in the path of a hurricane—which already had damaged property elsewhere—would appear to meet this requirement for coverage. Again, windstorm must be a covered cause of loss on the business's policy, and the business must sustain a loss of business income because it was shut down by the evacuation order.
However, a mere decrease in business because people did not want to venture outside during a storm, absent a governmental order shutting down access, would not satisfy the criteria for coverage under the civil authority provision.
One other provision of this coverage also would affect coverage. There is a seventy-two-hour waiting period under the civil authority provision. In other words, a civil authority would have to shut down the business for three days before coverage is triggered.
This BOP coverage grant provides up to $5,000 of insurance for damage to insured businesses that lose business income because one of their "dependent properties" is damaged by a covered cause of loss. A dependent property is one that delivers materials to the insured, accepts the insured's products or services, manufactures products under contract for the insured, or attracts customers to the insured's business.
For example, a restaurant may be in a shopping center that is anchored by a large, prestigious department store. Shoppers might generate the bulk of the restaurant's business. The occurrence triggering business income coverage for the restaurant would have to occur at the department store in order for coverage to emanate from the dependent properties provision.
Again, there is a requirement for physical damage at one of these properties that arises from a covered cause of loss.
While flooding caused by hurricanes could lead to business interruption losses, flood is not a covered cause of loss on most policies. Although flood insurance may be available to commercial property insureds through the National Flood Insurance Program, it is important to note that the NFIP coverage does not include provision for business interruption losses. So, if a business is affected solely by flood waters and not by actual windstorm, business income insurance may not be available.
This is a standard coverage form that is used to insure businesses that are larger than those that qualify for a BOP. It is used in conjunction with a commercial property coverage form and a cause of loss form but may be written as a separate policy. The causes of loss form dictates what perils are insured. In this case we will review potential coverage as it would flow from a special form cause of loss provision, which insures all risks unless they are excluded or limited on the policy. It is similar to the BP 00 03 discussed previously.
The Special Causes of Loss form, CP 10 30, includes exclusions that are applicable specifically to business income coverage. As with the BOP form, there is no coverage for:
The failure of power, communication, water, or other utility service supplied to the described
premises, however caused, if the failure:
(1) Originates away from the described premises; or
(2) Originates at the described premises, but only if such failure involves equipment used to supply the utility service to the described premises from a source away from the described premises.
But if the failure or surge of power, or the failure of communication, water or other utility service, results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss.
As with the BOP, this exclusion appears to clearly preclude any coverage for business income arising from an off-premises power outage. Coverage may be purchased for off-premises power failure, and if a business purchased that endorsement, coverage could be available if a hurricane tore down lines away from the insured premises, causing it to shut down even though there is no direct damage on the insured site.
The dependent properties and civil authority coverage discussed previously in regard to the BOP is similar to that found in the commercial property form.
Many insurers have drafted their own business interruption forms, and some large insureds may have successfully negotiated language that would provide coverage in addition to that discussed previously.
However, most would probably still require direct physical loss or damage to some tangible property in some specific place. They also almost undoubtedly would have a waiting period.
Workers compensation coverage is available to employees who are injured in employment-related accidents. Therefore, employees who might be injured by a hurricane-related incident while in the course of employment typically would be successful in filing for workers compensation benefits.
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