Thursday, September 6, 2018

Tropical Storm Gordon - Impact of Area-Wide Economic Conditions on Business Interruption Coverage in Louisiana and Mississippi

As Tropical Storm Gordon made landfall in Louisiana with wind speeds near hurricane strength, its impact will likely be felt across many states. Unlike the traditional business interruption loss, where the focus is on the impacted business and its pre-loss performance, when tropical storms and hurricanes hit, issues surrounding the impact of the storms on the overall economy can come into play. How courts deal with this issue can vary significantly based on the policy language used to define how the business interruption loss is to be calculated.