October 31, 2018 Articles

Lessons Learned from the Storms of 2017

How Harvey, Irma, and Maria are helping to shape storm-related commercial property insurance

by Michael S. Levine and Andrea L. DeField [1]

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.[2] In Texas, Hurricane Harvey generated about 670,000 insurance claims, including some 37,000 for damage to commercial property.[3] In Florida, the total number of claims from Hurricane Irma currently exceeds 978,000, of which over 58,000 concern commercial property.[4] 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.[5] A year later, claims disputes have erupted in coverage litigation.[6]

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