Give Vargas Gonzalez Delombard, LLP a phone call at ORL (407) 794-3056 Give Vargas Gonzalez Delombard, LLP a phone call at MIA (305) 224-6387 Give Vargas Gonzalez Delombard, LLP a phone call at TX (469) 213-2237 Give Vargas Gonzalez Delombard, LLP a phone call at DEN (720) 442-0370 Give Vargas Gonzalez Delombard, LLP a phone call at NY (347) 808-4890
Free Case Evaluation

Exceptionally Experienced Business‑Interruption Attorneys Serving New York

When natural occurrences force your company to shut its doors, seasoned legal guidance is essential to safeguard your bottom line. The team at Vargas Gonzalez Delombard has extensive experience helping New York businesses navigate complex insurance claims and pursue the compensation they’re owed. Reach out today to discuss how we can protect your livelihood.

What Will Business‑Interruption Insurance Cover in New York?

Business‑interruption (or business‑income) coverage cushions the financial blow when an unexpected event—a hurricane‑related power outage or a statewide evacuation—halts your everyday operations.

While each policy is unique, many reimburse NY companies for expenses such as:

  • Income You Would Have Earned: Replaces the gross profits your business was projected to bring in during the shutdown.
  • Employee Wages: Keeps payroll flowing so you can retain staff even while the doors are closed.
  • Rent or Commercial Lease Obligations: Covers monthly rent on your storefront, office, or warehouse, preventing default or eviction.
  • Mortgage Payments on Business Property: Ensures you stay current on loans secured by your commercial real estate.
  • Scheduled Debt Service: Helps you meet installments on existing business loans despite the dip in cash flow.
  • Cost of a Temporary Workspace: Pays for the move, setup, and operating costs at an interim location if your usual premises are unusable.
  • Employee Retraining: Funds the training required when adopting new equipment or processes after repairs.
  • Extraordinary Operating Expenses: Reimburses reasonable, above‑normal costs, such as expedited shipping or generator rental—that let you keep serving customers while repairs are underway.
  • Civil Authority Shutdowns: Compensates you when the city or state restricts access to your block (for example, after flooding or a building collapse nearby).
  • Fixed Overhead: Continues to pay essential operating costs—insurance premiums, utility minimums, and other baseline expenses—based on your historical records.

By bridging these gaps, business‑interruption insurance helps companies stay solvent and rebound faster after an unforeseen disruption.

Banner media

New York‑Specific Considerations 

NY Hazard Why It Matters Policy Points to Review
Coastal storms, hurricanes & flooding NY’s 2024 Hazard Mitigation Plan warns climate change will intensify coastal storms and storm‑surge flooding. Windstorms and floods are often separated; flood usually requires an NFIP or excess‑flood endorsement.
Winter nor’easters & heavy snow Winter storms can collapse roofs and cut power; the City classifies them as a city‑wide hazard.​ Ensure BI/extra‑expense applies to snow, ice, and resulting utility failures; check waiting periods.
Off‑premises utility service interruption An outage from major utility providers such as Con Edison or National Grid can disrupt POS systems for days. Utility losses away from your premises are typically excluded.​ Add “Utility Services—Time Element” or similar endorsement for power, water, steam, and telecom.
Government‑mandated closures In response to COVID-19 closures, New York proposed bills from 2020 to 2025 to expand business interruption (BI) coverage. A 2025 law for broader BI coverage related to civil authority orders has been introduced, but broad mandatory coverage is not universally required; it's optional and must be selected by the policyholder. Check for endorsements that waive the physical-damage prerequisite. Verify civil‑authority coverage, waiting period, and length of indemnity; consider riders that remove the physical‑damage prerequisite.
Supply‑chain & transportation disruptions Recent strikes closed the Port of NY/NJ, delaying cargo and inventory for weeks. Look for “Contingent BI” or “Dependent Property” endorsements covering supplier/customer shutdowns.
Extra‑expense coverage NY rents and emergency logistics can dwarf standard limits; hurricane‑claim studies list extra‑expense and off‑premises utilities as top gaps. Set realistic limits for temporary premises, generators, data recovery, and expedited shipping.
Regulatory compliance & annual reviews NY DFS expects insurers and businesses to maintain robust disaster‑response and business‑impact analyses every year. Schedule annual policy check‑ups and keep written business‑continuity plans in sync with coverage.

Potential Business‑Interruption Coverage Risks

Incomplete Income Documentation

Many business owners realize too late that they lack complete income records before a loss. Maintaining clear records of actual income, including sales and fees, and documentation justifying these amounts is vital. Without dated financial statements, POS reports, invoices, and tax returns, insurance companies may dispute your claim and lower your payout.

Overlooking Intangible Losses

Standard insurance policies typically emphasize measurable revenue but neglect harder-to-quantify losses, such as brand reputation, customer loyalty, and future earnings. Business owners should address these coverage gaps or seek endorsements for "loss of attraction" or impacts from "communicable diseases."

Critical Exclusions for NY Hazards

Many off‑the‑shelf forms exclude or limit:

  • Flood and storm‑surge losses (a significant risk in coastal zones 1–6)
  • Off‑premises utility failures tied to Con Edison or Verizon outages
  • Civil‑authority shutdowns that don’t involve direct physical damage to your building
  • Terrorism‑related event, unless you’ve opted into TRIA coverage

Review the declarations and exclusions carefully; to stay fully protected, you may need separate flood, utility‑service, or terrorism endorsements.

Stringent Proof‑of‑Loss Requirements

New York insurers expect granular back‑up—general ledgers, bank statements, payroll registers, even customer booking histories—to validate a BI claim.

Submitting estimates without documentation risks delays or outright denial.

Lack of Professional Guidance

Calculating lost income, projecting “but‑for” sales, and navigating policy language is complex. We recommend working with accountants experienced with BI claims and attorneys who understand New York’s Insurance Law and Department of Financial Services regulations.

Background media

How an Attorney Can Help With Business‑Interruption Claims in New York

Vargas Gonzalez Delombard’s attorneys help NY owners get the full benefits of their insurance policies. We begin by reviewing your business interruption policy for common risks in the five boroughs, like storm surge flooding and utility failures. Without the right endorsements, many policies may limit or exclude these risks. We identify any gaps and suggest improvements before a loss occurs. Next, we create a strong claim file. New York insurers must investigate and settle claims promptly and fairly under New York Insurance Law § 2601 and Regulation 64 (11 NYRR 216). Our team helps you gather all necessary documents, reducing the insurer's ability to challenge your claim.

If an insurer delays, underestimates your losses, or uses questionable exclusions, we insist they follow Regulation 64’s timing and good-faith standards. We turn to New York common law if they still refuse to pay. Courts have ruled that a wrongful delay can lead to additional damages beyond your policy limits, including potential business collapse. If negotiations don’t work out, our lawyers are ready to file a lawsuit for breach of contract, seek reasonable damages, and pursue extra legal relief when necessary. We also report issues to the Department of Financial Services, which can impose fines and take action against repeat offenders.

FAQs

How soon after a disruption do I have to alert my insurer?

What is the “waiting period,” and can I shorten it?

Do I need a total shutdown, or will a 50 % slowdown qualify?

Can I get advance (interim) payments while the claim is still being adjusted?

What records should I maintain if I need to file a BI claim later?

How soon after a disruption do I have to alert my insurer?

Your policy will say “prompt notice,” but New York’s Unfair Claims Settlement Practices Rule (11 NYRR 216.4) gives insurers 15 business days to acknowledge a loss once you notify them. If you wait much longer, the carrier may argue late notice and trim the payout.

What is the “waiting period,” and can I shorten it?

Most BI forms impose a 72‑hour (three‑day) waiting period before coverage begins. Many carriers will reduce or even waive those hours for an added premium, which can be crucial for restaurants or e‑commerce firms that lose sales when the lights go out.

Do I need a total shutdown, or will a 50 % slowdown qualify?

The ISO BI form defines a covered loss as any “necessary suspension of operations, including a slowdown.” If you can show measurable revenue loss tied to a covered peril, partial operations may still trigger coverage, though insurers often push back, so track sales data carefully.

Can I get advance (interim) payments while the claim is still being adjusted?

Yes. Regulation 64 encourages carriers to pay the undisputed portion of a claim promptly, and best‑practice property guidelines call these on‑account payments. They ease cash‑flow strain while forensic accountants finalize the numbers. If the insurer balks, your attorney can cite the regulation’s “prompt, fair, and equitable” standard.

What records should I maintain if I need to file a BI claim later?

Keep monthly income statements, sales reports, payroll registers, tax returns, vendor invoices, and even booking calendars. Detailed pre‑loss data lets forensic accountants model “but‑for” earnings, while contemporaneous logs of mitigation steps (generator rentals, overtime, temporary moves) document extra‑expense claims. Business‑continuity experts say this discipline is the linchpin of a smooth recovery.

man pointing to a folder

Your Rights Matter—Trust Us to Defend Them

From closing coverage gaps to taking an insurer to court, Vargas Gonzalez Delombard delivers strategic, New York‑specific advocacy that helps businesses get back on their feet and keeps carriers honest. Contact us today to book your consultation and learn more about what we can do for you.

This field is required.
Subscribe

Free Claims Consultation Tell Us About Your Case

Get a Free Case Evaluation
Contact us media
Accessibility: If you are vision-impaired or have some other impairment covered by the Americans with Disabilities Act or a similar law, and you wish to discuss potential accommodations related to using this website, please contact our Accessibility Manager at (347) 808-4890.
Contact Us