Insurance

What kinds of losses and liabilities resulting from the WTC disaster could be covered by insurance?

Your right to recover will depend on what kinds of losses you have suffered, which types of insurance policies you have, and what those policies state.

Which types of policies could provide coverage for injury or damage suffered by me or my business?

For direct property damage, including collateral damage from dust and debris, and for indirect property damage, including business income losses, extra expenses, and computer, valuable record, and data processing losses, you can look to the following types of policies:

all risk policies;
named peril policies (fire, etc.);
building and personal property policies;
business owner property policies;
boiler and machinery policies;
computer policies;
commercial inland marine policies;
causes of commercial loss policies;
condominium commercial property or owner policies;
homeowner/renter policies;
ordinance or law commercial property policies;
jewelers block policies; and
valuable papers and records policies.

If your business was closed or events cancelled by damage or governmental action, in addition to being covered by the policies listed above, you may be covered by business income (and extra expense) and cancellation policies. If you suffered damage to vehicles such as automobiles and boats, you may be covered under business or personal automobile policies, truckers policies, motor carrier policies, mobile equipment policies, garage coverage and marine policies. If you or your employees were injured, you or they may be covered by your workers' compensation policy. If not, which may be the case if you are a sole proprietor, director, or officer, you can look to health insurance policies and short- and long-term disability policies (group and individual). See the Employment and Benefits section of this handbook for additional information.

If I have one of those policies listed above, how do I know if I am covered?

First, you must obtain copies of your current insurance policies. You can do this by contacting your insurance broker or agent. Once you receive the policy, you should check the Declarations Page to confirm the policy number, named insured, policy period, limits of liability for each type of coverage available under the policy, and the Endorsements that apply to the policy.

Second, you must make sure the premiums have been paid up to date. Receipts or cancelled checks can be used as evidence. Third, you must determine if the policy was in effect on September 11, 2001. This can be done by checking the Declarations Page and Endorsements for the policy period and verifying that you have not received any notice of cancellation from the insurance company. Fourth, you must check the Declarations Page and Endorsements to confirm you are named as either the Named Insured or an Additional Insured and that the property in question is also insured under the policy.

Whom do I contact to make a claim?

First, you should check the websites of your insurance companies for any special notice, claims, or other procedures set up for WTC disaster claims. See a complete list of all U.S. insurance companies online at www.ultimateinsurancelinks.com. Second, you should contact your insurance agent or broker immediately and notify them in writing about your loss, including your policy numbers. Prepare a preliminary report describing the date, location, type of loss, a contact person at the company and the property involved. Your insurance agent or broker should send you written confirmation for you to keep in your records. Third, you should prepare and submit a claim including all the information in the preliminary report as well as a breakdown of the amount claimed, together with supporting documentation. Your insurance broker should notify the insurance company for you, but you should send your own written notice as well to be sure.

What should I do to prevent my claim from being denied?

The most important thing you can do is document your loss. You need to collect records and photos that document the condition of your business, property, and surrounding areas. You will need to establish ownership and value of the damaged property. Take photos every day until your business returns to normal. Retain copies of bills for any services rendered and any purchases made during this period. Set up accounting procedures to track loss-related expenses, inventory and damaged goods, and determine the value of lost production. To establish the value of a loss, you may want to hire a public insurance adjuster. They are licensed by New York State and are usually paid a percentage of any recovery.

There are other steps you can take to help your claim. You should make sure all communications with your broker and insurance company are in writing. Submit your proof and claim within the time set forth in your policy. Supplement your claim as necessary with further proof, and make sure any extensions you get are in writing.

What should I be doing while my claim is being evaluated?

In addition to documenting your loss, you should formulate a plan with the insurance company for making repairs, securing substitute facilities and equipment, and undertaking other efforts to decrease your losses. This could include determining whether the property is protected from further damage, restoring service to damaged property protection systems, and separating damaged and undamaged property.

What should I do if my claim is denied?

If your claim is denied, you should consult a lawyer. Also, you may want to object in writing and ask your insurance company to reconsider the denial, sending along any new information you have. If your insurance company disputes part of your claim, you may want to seek advances of the undisputed portion if you can do so without giving up your rights to the disputed portion.

What kinds of insurance coverage could I have for claims made against me or my company?

Workers' Compensation claims can be brought against you by injured employees or their families for disability and lost wages. Injured visitors or those employees who are exempt from Workers' Compensation may have claims under health insurance, short- and long-term disability and travel accident policies. You may be covered by commercial general liability policies for lawsuits brought against you for bodily injury or property damage. Commercial and personal umbrella and excess policies may provide additional coverage.

Where can I get more information?

The New York Insurance Department handles insurance questions and complaints. You may call their Disaster Hotline at (800) 339-1759, seven days a week, or visit them online at www.ins.state.ny.us.