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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41220
Experience:  Run my own successful business/contract law practice.
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Hi I have a business claim from a Hurricane where I lost business

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Hi I have a business claim from a Hurricane where I lost business from the storm taking out my power for a week. The insurance is trying to pay 2 of my smallest projects I lost but is refusing to pay the two larger ones simply because they are stating that since the two larger ones took more time than the power outage then the clients must have cancelled for other reasons. I told them no. All 4 projects started being stopped by the power outage. Most of the time these projects are time sesative and they can't break them up so they have to pull them when something like this happens.

Thank you for your question. Please permit me to assist you with your concerns.

I am sorry that the projects were cancelled. Have you considered speaking with your past clients and getting them to fill out affidavits stating that they cancelled due to 'impossibility' and 'Act of God'? That likely is the best option since if the projects themselves state that the cancelled over this event, the insurer is going to have a hard time arguing the reason was based on something else short of calling your past clients liars. And I doubt that the clients will disagree as that does not really cost them anything other than a few minutes of their time.

Good luck.

Dimitry K., Esq. and 2 other Business Law Specialists are ready to help you
Customer: replied 3 years ago.

The other part of my claim is they are deducting usual expenses I would have occured? Is this part correct? what if some of the expense would not apply to these projects?

Thank you for your follow-up, Timothy. My apologies on the delay.

That happens to be correct. For example if you have staff on regular payroll and not someone that you pay per diem or per project, that overhead would have existed regardless of whether or not your contract was canceled due to "Act of God". Insurers only tend to cover either directly listed damages, or directly foreseeable expenses from the breach, or both. They generally do not cover other expenses. I can surely double-check for you as to whether or not their denial is valid based on a specific example, but at least solely going by your comment it does not necessarily strike me as an improper denial.

Good luck.

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