Loss of Business Income

A Texas judge has ruled that Hunton Andrews Kurth is entitled to coverage from Great Northern Insurance Co., a unit of Chubb, Ltd. (Chubb), for losses its predecessor firm suffered when Hurricane Harvey closed its Houston office and disrupted business in 2017.

The court agreed with Hunton’s position that the policy, written specifically for a law firm, covered its business income loss until the firm’s operations were restored to their pre-loss levels.  The court rejected in its entirety Chubb’s argument that coverage lasted only until the physical damage that closed the building had been repaired.  Rather, siding with Hunton, the court found that the policy language affords, in addition to ordinary business income coverage during the damage period, “extended period” coverage that commences after the damaged property is repaired and after the firm’s operations resume.
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