If superstorm Sandy hit Maryland the way it did New Jersey, how would your business have been affected? Superstorm Sandy’s impact may trigger significant business interruption (BI) and contingent business interruption (CBI)  coverages. According to the Insurance Journal, “In order to incur a BI or CBI loss, an insured must suffer an actual loss of income from the suspension of operations.  In most cases of BI, the interruption must be due to physical loss or damage to its own property as a result of a covered cause of loss. A BI claim can also be triggered it the work location is not accessible due to a “civil authority” order telling people to stay out of an area.  Meanwhile, CBI provides an additional  protection that covers loss of income when the insured’s operations are disrupted by a supplier and covers the same perils as the main policy of the insured.  However, the majority of companies do not purchase CBI policies.

Coverage typically begins following a waiting period, most often 72 hours, and continues for the length of time it takes to repair, rebuild, or replace the damaged or destroyed property with reasonable speed and similar quality.”

Another coverage typically not found in standard insurance policies is Off-Premise Utility Services. This optional endorsement extends coverage to loss of, or damage to, covered property on the described premises caused by interruption of service. The interruption must result from direct physical loss or damage by a covered cause of loss to one or more of the following services located off-premises: water supply services, communication supply services, power supply services.

By reviewing with your insurance agent the coverages in your property policy, you can see if these critical, but often overlooked coverages, are part of your policy.