Commercial enterprises doing business in Louisiana are beginning their recovery in the wake of Hurricane Ida. Many face catastrophic property losses, often accompanied by business income losses due to a complete cessation of business activities. Fortunately, many business owners have had the foresight to contract for business interruption insurance (also called "business income" insurance or time-element coverage). While having coverage offers some relief to affected businesses, the complexity of a business interruption claim coupled with a pressing need for operating capital creates a difficult scenario for business owners. Jones Walker is ready to assist clients in navigating this process, and we offer the following "golden rules" to provide some guidance in the preparation of business interruption insurance claims.

• Thoroughly examine and document all physical damage. Except for coverage under civil authority clauses that is limited to a short time period, physical damage to covered property is the triggering event for attachment of business interruption coverage. The physical damage must be substantial enough to cause the interruption. Thus, it is imperative to conduct a thorough examination, and to photograph and document damage in detail before any remedial work is performed. A construction expert or other expert can be helpful in some cases. The damage may be greater than the untrained eye can detect. If the insurer believes part of the losses resulted from a non-covered risk such as a flood, and if you disagree, then the need for a skilled independent expert becomes greater. Continue reading >