After making landfall early Saturday morning as a major hurricane, Tropical Storm Harvey has left a widespread path of destruction, significantly damaging the infrastructure in the Houston area and Southeastern Texas, crippling virtually all operations of businesses in the nation’s fourth largest city and largest energy hub, and causing losses estimated in the tens of billions of dollars. In addition to the property damage suffered by businesses with facilities in the Houston area, many businesses will experience significant business interruption and supply chain losses as a result of extended closures of refineries, ports, airports, roads, and other critical infrastructure in the wake of the storm.

Texas Policyholders ShouldAttempt to Notify Insurers of Claims and Potential ClaimsBy August 31, Before HB 1774 Goes Into Effect.

Policies frequently require that an insured notify the insurer “immediately,” “as soon as possible,” or “as soon as practicable” after the insured becomes aware of a potential claim. The effect of failure to provide notice in accordance with the policy terms varies among jurisdictions, but the consequences of failure to comply with notice provisions may be severe and preclude coverage. Property policies also often contain deadlines for providing a “sworn proof of loss” documenting the causes and value of the loss. It is important to know these deadlines from the outset and to seek extensions if necessary.