Seeking to Recover for the Different Types of Business Losses

If you own or operate a business in New Jersey, you may have experienced a wide range of losses when Hurricane Sandy swept through the East Coast last year. Your property may have been destroyed or flooded. You may have been unable to conduct business for weeks or months, or may still not be back in business. If, like most business owners, you have faithfully paid commercial insurance premiums, you may be anxious to know your prospects for recovering compensation for some or all of your losses.

Property Damage Suffered in Hurricane Sandy

As a general rule, physical damage to commercial buildings is covered by the provisions of a property and casualty policy. Your policy may insure you against “all risks,” in which case loss caused by any event not specifically excluded by the policy will be covered. Such policies can be expensive, so many business owners opt for policies that provide coverage for “named perils.” A “named peril” insurance contract provides coverage only for events or contingencies that are specifically identified in the policy.

Once you have determined whether you have an “all risks” or a “named peril” policy, you must then determine the cause of the damage, and will need to ascertain whether there are specific deductibles that apply in unique situations. It is not unusual for a policy to have a deductible that applies to a certain risk, such as a hurricane. You may also conclude that the damage to your property was the result of combined event, such as wind and water. If you have coverage for wind damage, but not water damage, you may also be subject to limits.

Business Interruption or Income Loss Coverage

Even if you don’t have coverage for physical damage caused by water or flooding, you may be able to seek insurance benefits for loss of income because you could not be open for business. Some insurance policies provide coverage for interruptions that result when the actions or order of a civil authority prevent you from going to your business.

You may be able to seek reimbursement of lost income if a covered peril prohibits access to your business. Even if you can get to and from your business, you may be entitled to insurance coverage for lost profits if you experienced an interruption of critical services, such as power or water, due to a covered peril.

Contact Del Duca Lewis & Berr

If you have concerns about insurance coverage for commercial losses suffered in Hurricane Sandy, you want an experienced, knowledgeable and aggressive lawyer to protect your interests. At the law office of Del Duca Lewis & Berr, we offer five decades of commercial real estate and business law experience to clients across southern New Jersey and the greater Philadelphia area. Attorney Damien Del Duca has been named a New Jersey Super Lawyer.

To schedule an appointment to discuss your real estate or business law needs, contact us online  or call our office at 856-427-4200.

Where does redevelopment stand in New Jersey? The answer is a little uncertain.

Cutoffs in State Funding

For most of the last quarter of a century, local governments in New Jersey have counted on the participation of the state to develop and implement programs for community revitalization. All that came to a screeching halt, though, when New Jersey’s governor cut off most state aid, mandating that they become more self-reliant. In response, local communities have sought to foster public-private relationships with businesses to create incentives for economic development. State government officials, most notably the New Jersey State Comptroller, have maligned these efforts, contending that the businesses are getting a handout, as they would have located in these communities anyway (this in spite of substantial evidence to the contrary).

To further complicate matters, New Jersey’s Local Finance Board issued a rule requiring that any local government receiving state transition aid must agree in writing to share certain revenues with school districts, even if a project has no relationship to schools or school children, and will not lead to an increase in the number of school children.

The Use of Redevelopment Bonds

One of the most effective tools available for redevelopment is the issuance of bonds under the Redevelopment Area Bond Financing Law. The advantages of such an approach include the ability to sell these bonds as a safe investment, secured by payments in lieu of real estate taxes (PILOTs), as well as a lien on the land and all improvements. Also, because the bonds are repaid from the PILOTs, they generate a source of funds for the project, so that the municipality does not have to come up with separate funds.

New Tax Credits Available

On January 6, Governor Chris Christie signed a new law, establishing the Grow New Jersey Assistance Program. Under the statute, companies looking to move into or stay in New Jersey can obtain a tax credit for significant capital investments. The program offers a credit of $5,000 to $8,000 for each job created or retained by the company, up to a ceiling of 100 jobs. The credits can be claimed for 10 years. The new program expands credits to municipalities throughout the state of New Jersey, based on planning areas and regions zoned for growth.

The Grow New Jersey program is an effort to expand on and improve the largely unsuccessful Urban Transit Hub Tax Credit (UTHTC) incentive program, which initially generated much interest, but carried certain requirements that made many businesses ineligible to participate. The new program expands the geographic areas, lessens the capital improvement thresholds, and focuses on job creation and retention.

Contact Del Duca Lewis & Berr

To schedule an appointment with a seasoned business lawyer, contact our office by e-mail or call us at 856-427-4200. We offer flexible meeting times to accommodate your schedule.