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:
- Real estate
- Wholesalers and distributors
- 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
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.