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Many of the midtown businesses compelled to close following last Tuesday's scaffolding collapse at 4 Times Square are discovering gaps in their insurance coverage that will force them to absorb much of the losses they've experienced.
Although many companies now have insurance that covers losses resulting from man-made or natural catastrophes, those policies frequently do not insure against street closings and building evacuations. In the wake of the scaffolding collapse, police closed the four-block area surrounding Conde Nast's unfinished skyscraper. Even policies that do cover street closings and other "police actions" may exclude losses suffered within the first 72 hours of an accident.
Caught unprepared
Meanwhile, countless small companies and restaurants probably never considered buying business interruption coverage or are under-insured. The situation is a stark reminder that too many businesses don't understand the nuances in their insurance policies and may not be aware of all the options available to them.
Asking for help
"Very few people ever read their policy," says Robert Lucurell, chairman of Adjusters International, a national public adjuster firm that helps to resolve insurance disputes. "Most people will get something back if they get some help. The insurance companies are not going to roll over and write checks for this stuff."
Mark Sendroff, an attorney with an office at 1500 Broadway, says his insurance policy will not compensate him for lost business, even though he has not...