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.
