Hurricane Florence and Business Interruption

hurricane florence business interruptionOn September 14, 2018, Hurricane Florence made landfall near Wrightsville Beach, North Carolina unleashing destructive winds and rainfall leading to catastrophic loss in the Tarheel state. Eastern North Carolinians bore the brunt of the storm’s excruciatingly slow movement as it dropped as over 30 inches of rain in some places causing flooding in many areas. Residents of these areas are still evaluating the damage and picking of the pieces of their lives. Often lost in the discussion are the small businesses, be it manufacturing, hospitality, farmers, or more. They too have difficult choices to consider as they assess, rebuild, and respond to business interruptions. The following summarizes some of the considerations for small business owners responding to losses from this disaster:


  • Insurance policy – Do you have a business interruption rider or another mechanism in your policy that allows for recovery of loss due to interruption of the business?
  • Calculation of loss – How do you know what your loss is and how much is recoverable?
  • Cash advances – Are cash advances possible under the policy available in the interim? If so, how do you go about receiving them?
  • Accounting for recovery costs – Do you have a process in place to account for the recovery costs that will satisfy the insurance requirements?
  • Insurance claim reports – Are you prepared to complete the lengthy claim reports the insurance company will require?

Navigating through any one of the above could be cumbersome and foreign to many business owners, not to mention the time that it takes away from running the actual business. Forming a team of professionals to help lead you through this process could be invaluable to the continuation of your business. Contacting a CPA, legal counsel, and insurance professional would be an excellent first step. Contact CRI for help getting started.

2019-01-09T12:34:47+00:00January 9th, 2019|DISASTER RECOVERY|