NATIONAL REPORT— Time is fast running out for many hoteliers to file claims with their insurance carriers for business interruptions and losses stemming from the events of 9/11 and their aftermath. As noted by David Steuber, partner and co-chair of the Insurance Recovery Group of the law practice of Howry Simon Arnold & White in Los Angeles, CA, the terms and conditions spelled out in many insurance policies routinely and contractually limit the applicable filing period for any claims to one year after the triggering event. In this instance, Steuber maintained a number of hoteliers who have not filed claims by Tuesday, Sept. 10 may well find their window of opportunity to do so contractually closed. “Most policies have a one-year contractual limitations period,” Steuber said. “In the case of those claiming damages wrought [directly or indirectly]by the events of 9/11, that means they have only a few more days to file a claim… or obtain a filing extension from their insurance companies.” Perhaps surprisingly, he suggested there seems to be a significant number of hoteliers not bent on filing for damages suffered— real or perceived. As Steuber pointed out, it can often be particularly difficult to make a case for “downstream/ripple-effect” (i.e. collateral) damage brought about by an event that hasn’t directly or physically impacted one’s lodging property. Moreover, the California-based attorney contended many insurance companies have been extremely up-front about what their reaction would be to the filing of such claims. “In several instances, the [insurers]have made it plain they would deny any and all such claims. Furthermore, in some cases, the insurance companies have actually threatened to discontinue coverage for those filing such claims.” While it may not be the easiest scenario to document, Steuber said it is entirely reasonable that hotels (and other businesses) not immediately adjacent to the point of impact of such cataclysmic events could still experience undue financial hardships and unexpected business interruptions. To this end, he pointed to the government-mandated suspensions of air-travel (and in some parts of the country, airport) operations in the wake of the 9/11 terror attacks and the obvious effect such actions had on airport, big city and fly-to destination hotels.
David Steuber