Charley highlights business coverage issues

A new public service release from the Property Casualty Insurers Association of America (PCI) discusses the impact Charley has had on commercial interests in Florida. It notes that some covers which are not standard to businesses, but which can be purchased as “add-ons” were shown to be of use in the aftermath of Charley. For example, businesses could have purchased coverage for business interruption due to external power outages, something many businesses experienced as a result of Charley.While standard business coverage generally includes loss to the building, fixtures and permanently installed equipment, it may not include building foundations, land, pilings and docks. Commercial vehicle coverage is also separate.The Insurance Services Office (ISO) estimates that commercial claims will account for about 40% of the estimated insurance price tag for Hurricane Charley, which hit Florida and the Carolinas in mid-August.