Media Coverage
Source: Law360
Media Coverage
08.25.14
Although it can be a big expense, the August 24 6.0-magnitude earthquake in Napa served as a reminder to business owners that earthquake insurance may be worth the cost. Law360 reports that many companies choose not to buy commercial earthquake policies because they can come with high deductibles and cost-prohibitive exclusions. But the Napa quake was the third in California this year and the state typically experiences at least one major quake every decade that causes significant damage. In light of that frequency, Pillsbury lawyer Robert Wallan tells Law360 businesses should at least do an analysis of their earthquake risk, what a policy might cost them and what their existing insurance policies already cover.
“If there’s an earthquake and you don’t have insurance, you’re going to be on your own,” Wallan, a litigation partner in Los Angeles, said. “In the best case scenario, you may be able to get [federal assistance] that you can borrow and will have to repay.”
Though a business owner may be wary of an earthquake policy’s various exclusions and assume much of the damage won’t be covered, Wallan says not to give up if an insurer denies a claim.
“Hundreds, if not thousands, of lawyers spend their careers on the issue of whether things are covered or not,” he said. “The typical reaction for the insurance company is to deny a claim and hope it goes away. Many policyholders don’t take another look, but it’s always a smart idea to seek a second opinion.”