12/6/2011 - Business interruption claims boom after October snowstorm
The freak October snowstorm that left parts of New England blanketed in more than two feet of snow sparked a dramatic rise in business insurance claims, a new report reveals.
According to industry representatives interviewed by Insurance Journal, a large portion of the claims came from restaurateurs, whose business operations were interrupted by power outages.
"Primarily with us, it's been diners and delicatessens," said Joseph Merullo, president of a New Jersey-based insurer. "They lost their power between three to five days and they couldn't open their businesses."
Many Connecticut businesses were left in the dark for weeks. In fact, according to estimates the source obtained from the state's insurance department, insured damage totals ran as high as $750 million.
Business interruption coverage is a standard part of many business insurance plans that reimburses policyholders lost income that resulted from a severely weather or disaster-related event, such as a fire. To learn more about business insurance from Selective, including business interruption coverage, click here
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