My client is a nationally recognized speaker on sales and marketing issues, and speaks frequently to Business Owner groups all over the US. He was booked to speak to three groups on Long Island during the week after Hurricane Sandy. Those presentations were cancelled at the last minute because of the devastation from the wind which downed trees and power lines, interrupting power in the affected areas. My client lost $3,000 in revenue as a result.
He called and asked if there was any coverage under his basic business owner’s policy covering his office contents and general liability. My initial reaction was probably not, but that I would check the policy (always a good idea for an insurance professional).
Loss of revenue is under the general heading of “business interruption” insurance. Typically, a business interruption claim is triggered only if there is also direct property damage to insured property. There was no damage to his California office property, ergo, no coverage for revenue loss.
Upon further review (in common football parlance), this was a policy that provided a number of “supplemental” coverages, including “Business Income from Dependent Properties.”
The policy language went on to define the coverage, agreeing to pay up to $25,000 for “Loss of Business Income due to direct physical damage at property of others you depend on.”
The Long Island locations for the speaking engagements certainly qualified as “property of others you depend on” and after a brief conversation with the Insurance Company adjuster, they agreed to pay the claim. The client only needs to submit documentation showing the engagement and cancellation details.
Every once in a while there is a happy ending.
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