Tornadoes recently ravaged much of the southeastern United States, leaving unprecedented destruction in their wake. Early estimates indicate that in addition to the tragic loss of life, the recent tornadoes may have caused over $5 billion in insured losses. Additionally, serious flooding from the Mississippi River is resulting in massive losses to corporations and individuals.

If your company has sustained property damage or business interruption due to a natural disaster, in the majority of cases your insurer should be reimbursing your company for those losses. Most commercial insurance programs provide the following types of coverages that can provide valuable assistance when rebuilding after a natural disaster:

- First Party Property Insurance – generally covers the cost to repair or replace the policyholder’s damaged or destroyed property;

- Business Interruption Insurance – generally covers lost profits arising from the complete or partial interruption or cessation of the policyholder’s business arising from damage to property; and

- Contingent Business Interruption Insurance – generally covers lost profits arising from damage to property owned by your company’s customer or supplier – for example, lost profits due to supply chain interruptions caused by tornado damage.

Please see full Alert below for further information.