Business Interruption, Contingent Business Interruption and Counting Occurrences In Natural Disasters — The 72-Hour Clause, Insurance Policyholder Advocate

As a consequence of the disasters in Japan and Thailand in 2011, many companies are working through the process of presenting business (or contingent business) interruption claims due to supply chain disruption. Such losses also are called “time element losses.” Due the scope of the natural disasters in Japan and Thailand, the resulting claims potentially raise issues with respect to the number of “occurrences” involved in each. Outside the sphere of insurance, one might think that the events in Japan and Thailand each constitute one occurrence. Of course, the world of insurance operates under its own terms, and this post touches on the concept of occurrences in the context of widespread property losses.

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