This article addresses the complexities in measuring lost business income post-hurricane based on lessons learned by hospitality industry insureds in storm-prone regions.
The 2017 hurricane season produced an estimated $200 billion in economic losses. In Texas, Hurricane Harvey generated about 670,000 insurance claims, including some 37,000 for damage to commercial property. In Florida, the total number of claims from Hurricane Irma currently exceeds 978,000, of which over 58,000 concern commercial property. And, in Puerto Rico, only about 40 percent of the expected insurance claims have been closed to date, with $1.7 billion paid for residential and commercial property claims. A year later, claims disputes have erupted in coverage litigation.