Hunton Retail Law Resource

This year, like last, the National Oceanic and Atmospheric Administration predicts an extremely active hurricane season. As we write this alert, the Gulf Coast, Mid-Atlantic, New York, and New England regions are just now realizing the devastation Ida has left in her path. Now is the time to ensure your insurance program is hurricane-ready. As reported in the client alert linked below, our insurance coverage team provides critical steps that you should take now to ensure that you protect your assets and maximize recovery in the unfortunate event of a hurricane claim.

Many recent government orders require “nonessential” businesses to close due to COVID-19, resulting in massive financial losses for many retail businesses. The orders also change how “essential” retailers do business. For instance, Miami-Dade County’s mayor issued an executive order requiring people who visit or work at, among other places, grocery stores, restaurants and pharmacies to use face coverings. Los Angeles County issued a similar order. These orders may result in businesses’ turning away noncompliant customers, which will cause further financial harm. Regardless of the jurisdictions where your retail business is located, it is likely that there is a governmental order affecting its operations. Your business is likely sustaining or will sustain substantial losses as a result, and incur additional expenses to comply with evolving requirements and guidelines and in resuming operations as soon as possible.

Hurricane Florence will affect the U.S. east coast later this week with significant damage to property and resulting business disruption. Businesses far removed from the impact zone will also be affected as manufacturing, retail, travel, and supply chains, among other industries, are disrupted by the physical damage. For those in the impact zone, knowing the fundamentals about your property insurance is critical. For those in remote locations, now is a good time to refresh as well, since post-storm disruptions and losses require prompt notice to insurers and fast action to help mitigate any resulting loss. A failure on either front could jeopardize coverage.

Hurricanes Harvey and Irma have devastated portions of Texas, Louisiana and Florida. For retail insureds in particular, the losses due to property damage and business interruption will be staggering. In an article published September 12, 2017, in South Florida’s Daily Business Review, Hunton Insurance lawyers Walter Andrews and Andrea DeField explain why it is critical that policyholders act fast to maximize insurance recovery for their hurricane-related losses. They also provide a checklist to guide policyholders through the claim process and to ensure maximum recovery for any property damage and business interruption losses. As Andrews and DeField explain, business interruption and related coverage endorsements may cover loss resulting from (1) an inability to open for business; (2) reduction in business income when the business remains open but cannot operate at full capacity; (3) civil authority orders barring access to an insured business; and (4) service and utility outages effecting business interruptions — an important coverage in light of Florida’s ongoing power outages.