Legal Counsel for Industrial and Warehouse Insurance Claims in Tennessee
Valuable assistance for commercial policyholders in the Southeast and Midwest
Manufacturers, distributors, wholesalers, retailers, and many businesses use warehouses and other large industrial buildings for a variety of reasons. They may be keeping inventory there until it is purchased by clients or consumers, using it as a distribution hub, or as a manufacturing facility. It often costs millions of dollars to repair damage caused by hail, wind, fire, and other perils to these buildings. Damage to roofs and walls affect value, cause leaks, and jeopardize the business within. Even worse, it can result in loss of capital resources in terms of premature failure to building components and cost the property owner hard-earned money.
The Tennessee-based lawyers at McWherter Scott & Bobbitt understand the seriousness of these types of claims, and we fight for businesses of all shapes and sizes who suffer insurance loss across the South and Midwest. Our firm represents a wide cross section of industries with various insurance dispute issues. Some of the industries we represent include:
- Agriculture
- Construction
- Municipalities
- Healthcare
- Hospitality
- Manufacturing
- Real estate
- Transportation
- Wholesalers and distributors
- Sawmills
- And many others
What should a good commercial insurance policy cover?
Most property policies insure against all risks of direct physical loss, except as specifically excluded or limited by the policy. The exclusions and limitations are the key. Cosmetic damage exclusions, actual cash value only endorsements, and other trends in the insurance industry can greatly impact a policyholder’s ability to be made whole after a loss.
Another problem area is a coinsurance requirement, which can result in a large penalty and corresponding offset against insurance payments if the property is not properly insured to value. This makes property owners’ selection of a knowledgeable agent and insurer critical. As with most commercial policies, the type of building and business within dictates the types of risk protection and amounts of insurance necessary.
When industrial or warehouse properties are destroyed or sustain damage due to a natural disaster, fire, theft, or vandalism, properly purchased insurance should cover:
- The building and structural damage
- Damage to the contents, business personal property, equipment, inventory
- Loss of business income and extra expenses
Common warehouse insurance dispute issues
Our insurance claim attorneys deftly handle a wide variety of matters affecting insurance claims to these large properties, including:
- Structural damage. Warehouses and other industrial buildings, by their nature, are large structures that are expensive to repair or rebuild. Our insurance lawyers help with damage to these structures, including damage caused by hail, wind, fire, smoke, soot, collapse, sinkholes, and countless other perils. We help owners identify all avenues of recovery under the policy, identify a strategy to secure appropriate compensation, and take all appropriate action to protect our clients’ rights.
- Protective safeguards. Some policies contain protective safeguards, requiring insured to do various things, such as engage a security watchman, have fire sprinkler systems inspected, keep heat in the building, and multiple other things. Knowledge of the existence of any of these types of requirements is critical and a plan must be in place to make sure they are complied with or removed from the policy.
- Coinsurance issues. A coinsurance requirement is rarely a good thing and should be closely guarded against. Agreed value policies are better in practically every circumstance. If a coinsurance provision is present, there are often two hurdles during the claim process. First, identifying the proper scope and amount of loss. Second, fighting about the value of the property itself for coinsurance purposes. If underinsured, a large coinsurance penalty could be waiting at the end of the rainbow.
- Replacement Cost Value v. Actual Cash Value. Yet another major issue is the valuation provision in the policy. Will the claim be paid at replacement cost value or actual cash value (replacement cost minus depreciation)? If the latter, it is very important that depreciation is appropriately and fairly applied.
- Related business interruption claims. Loss of use of the facility or damage can result in loss of business income and other expenses. Determining the value of business interruption losses is often contentious, because different financial professionals can arrive at different conclusions even though they review the same taxes and financial records.
Our insurance attorneys can help you with these issues at the most appropriate time – before they come up. Before signing off on any insurance policy, it’s wise to review it with qualified professionals to ensure your business has proper coverage. And in the event you need to use your policy, McWherter Scott & Bobbitt will aggressively fight for you to secure all the benefits to which you’re entitled.
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Industrial insurance risks
Large industrial buildings have the same general insurance claims and disputes as other commercial buildings. However, they may have extra risk factors that should be considered.
For example, industrial buildings sometimes have environmental issues (such as toxic or flammable substances) and other compliance requirements that must be addressed immediately before any serious problems occur. Insurance may or may not exist for such items. After any kind of incident or damage, these issues must also be dealt with before the company will be permitted to begin operations again. The cost of regulatory compliance should be considered when buying property and business insurance, and when disputes about the insurance proceeds arise.
Experienced insurance lawyers for large industrial buildings and warehouses
McWherter Scott & Bobbitt fights for owners of warehouses and other industrial buildings when damage to their property, business, and contents occurs. We fight for building and business owners and hold their insurance companies accountable for all insured losses. To discuss your insurance claim with skilled Tennessee industry and warehouse insurance lawyers, call 731-664-1340 or fill out our contact form to arrange an appointment. Our attorneys are licensed in Tennessee, Missouri, Mississippi, Arkansas and Kentucky.