During Hurricane Sandy, many East Coast states were hit hard due to the storm surge, strong winds, and heavy rains. Because streets flooded and power was knocked out in certain areas, it made it almost impossible for people to commute to work. Unfortunately, hundreds of businesses were not able to function because their employees had no means of getting to work.
In the tri-state area, public transportation was shut down prior to Sandy making landfall, and many transit systems remained closed due to the damage sustained. For example, the metropolitan area’s mass transit system was closed for over a week, and many other New Jersey bus and light rail services were closed as well.
These closures of transportation systems left millions of tri-state workers without a way into work. When employees are unable to get to (ingress) or from (egress) work, a business may be able to collect losses due to the inability to operate. This is considered ingress/egress coverage.
Understanding Ingress/Egress Coverage
If a New Jersey business has ingress or egress coverage, business owners may be entitled to business losses that resulted from a storm preventing their employees having access to or from leaving the business’s premises. Most business insurance policies cover business losses sustained in this way. However, many insurance policies only cover the losses when getting to work is prevented because of a covered peril.
Some commercial insurance policies will require that the damage that is impairing employees’ access to the premises be in close proximity to the location of the business, e.g., within two miles of it; whereas other insurance policies will have different wording and coverage. In order to understand your New Jersey business insurance policy following Sandy business losses, you should get a free copy of our book Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.
We understand that you may have many more questions about your insurance policy provisions and exclusions and we encourage you to call the Voss Law Firm and talk with a skilled commercial insurance claim attorney at 888-614-7730 today for a free consultation.