Christchurch Earthquake - What Is Business Interruption Insurance? 10 Mar 2011
Early in February we started a series of blogs on legal issues that arise from the Christchurch earthquakes. At that time we did not know that another one was upon us. With the destruction caused by the second earthquake a plethora of issues are bound to affect a multitude of individuals and businesses.In this podcast we discuss business interruption insurance.
Click here to listen:
The main points are:
- Business interruption insurance covers you for the loss of gross profit as a result of the earthquake;
- May cover additional costs for restoring your business and of putting your claim together, for example, legal or accounting costs;
- It is best to talk to your insurer first, and clarify the approach with the insurer as a first step;
- It pays to look at the wording of your policy. Although policies are generally tightly worded, with the lack of decided cases in this area, there may be ambiguities that come to light as a result of the many claims going through now;
- There will be grey areas, so best to get advice if you don’t agree with the insurer’s opinion.
Please contact your usual Parry Field contact if you wish to discuss any earthquake or other legal issue. Note that this is not intended as legal advice, but merely as a general guide.