Crains New York - July 29, 2013 - (Page 6)

THE Sandy-claims deadline nears INSIDER BY LISA FICKENSCHER Insurance companies have been routinely firing off Sandy-related denial letters, but legal experts say such responses are hardly the final word on the matter. “You cannot rely on the claims department of your insurance company to determine whether you’re covered for a loss because they have an inherent conflict of interest,” said John Houghtaling, a managing partner of Gauthier Houghtaling and Williams, a law firm handling more than 600 Sandy cases. As the first anniversary of the storm approaches, business owners should consider filing a lawsuit against the federal government program that underwrites national flood insurance, or they will lose their right to do so, as well as their ability to challenge their private insurer, legal experts say. For those businesses that were denied coverage because they don’t have flood insurance—as was the case with thousands of companies in the city that are not in a flood zone—litigation is also an option. Lawyers say they may have up to two years from the date of the storm to file a complaint. “Their fate is dependent on the language in their businessinterruption policy,”said Paul Posey, chief executive of Canopy Claims Management, a public claims adjuster based in the city. Insurers rejected many businessinterruption claims, arguing that the power outage that led to the interruption was ultimately caused by Sandy’s floodwaters, and therefore only flood insurance would cover the claim—even if individual businesses did not have water damage. Several high-profile cases challenging that contention have al- ‘It makes me so angry that I’m being manipulated’ ready hit the courts, including one filed by the Trump SoHo Hotel. Experts predict many more will follow as policyholders exhaust their options. “It makes me so angry to realize that I’m being manipulated by a big business that is counting on people not being bothered to pursue their case,” said Mary Cleaver, owner of her namesake catering firm and a restaurant, Greentable, located in Chelsea Market. Ms. Cleaver lost nearly $200,000 in revenue during the five days her company didn’t have electricity. Her insurance company has not covered any of her losses because she did not have a flood policy. Now Ms. Cleaver is considering suing. The Cleaver Co. is among just 300 businesses that have utilized the mediation program established by Gov. Andrew Cuomo to address Sandy-related insurance disputes. In April, the state Department of Financial Services said it was investigating more than 100 complaints related to business-interruption insurance denials, but the agency has not provided any new information on the status of those cases or whether there are more of them. In the meantime, lawyers recommend that businesses take advantage of the mediation program, which is free and does not preclude them from later suing their provider. Another option is to hire a public adjuster rather than an independent adjuster, who works for the insurance company. Public adjusters are paid a contingency fee, usually 10% of a settlement, and represent only the policyholder. Jeffrey Zurofsky, chief executive of sandwich chain ’wichcraft, opted to hire a prominent insurance litigator. “Our attorney sent a strongly worded letter explaining that we disagree with our insurance company’s interpretation of our policy,”said Mr. Zurofsky. “We’re hopeful that they will say, ‘Let’s just settle this.’ ” Ⅲ by Erik Engquist and Chris Bragg bloomberg news Owners denied by their insurers have until first anniversary to sue Parsing the Times’ endorsement W hile Anthony Weiner’s sexting has dominated recent coverage of the mayor’s race, political insiders are also talking about another factor that will influence the outcome: which Democrat will get the vaunted New York Times endorsement. The value of the liberal editorial board’s backing has been debated by political insiders for years, and has undoubtedly diminished since the days when newspapers ruled the media world, but it is still coveted by candidates, especially those targeting left-leaning voters. Among the Democratic contenders, it is likely that none is counting on the Times’ stamp of approval more than Bill de Blasio. As the relatively powerless public advocate, and with scant tabloid appeal outside of the revelation that his wife once self-identified as a lesbian, Mr. de Blasio remains little known to many New Yorkers. But his base of educated liberals fits the profile of Times readers, and his istockphoto campaign seems aligned with the board’s values. Notably, he loathes high-stakes testing of schoolkids and favors higher taxes on the rich to fund early-childhood education. Working against Mr. de Blasio’s chances for the paper’s endorsement has been his middling poll numbers—a lack of viability is a negative for most editorial boards—but in a survey last week he climbed into a virtual tie with Mr.Weiner and former Comptroller Bill Thompson, just behind Council Speaker Christine Quinn. The Times’editorials lately have not been kind to the front-runner, hammering Ms. Quinn for supporting police profiling of Muslims and poking her on other issues, but two pundits said the endorsement is hers to lose. “They supported giving [Mayor Michael] Bloomberg a third term, and I think Bloomberg really has his tentacles in there,” one said, alluding to the mayor’s preference for Ms. Quinn over her Democratic rivals. The source speculated further that Mr.de Blasio might be too 6 | Crain’s New York Business | July 29, 2013 liberal even for the Times. The paper has already called for Mr. Weiner to leave the race, and it appears less than impressed with Mr. Thompson, who was Mr. Bloomberg’s opponent in 2009. Comptroller John Liu’s fundraising scandal, along with his fifth-place poll standing, likely rule him out. But those three candidates’ core supporters are not much influenced by the Times anyway. While the endorsement would be a validator for Ms. Quinn, whose positions have bothered some liberals, the paper’s power is concentrated in Manhattan below 110th Street, where many voters are already committed to Ms. Quinn, one insider said. That leaves Mr. de Blasio as the Democrat who would benefit most from the paper’s backing, especially as 48% of his supporters in a recent poll said they were likely to switch to another candidate. “I don’t think a lot of voters know as much about Bill as they know about Quinn,” the insider said. “It has a lot more upside for Bill.” Ⅲ 15 DAYS IN JAIL, along with a $100 fine per fish, for possession of shark fins under a state law effective July 2014. http://www.crainsnewyork.com/stats

Table of Contents for the Digital Edition of Crains New York - July 29, 2013

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
OPINION
ALAIR TOWNSEND
GREG DAVID
REPORT: FOOD BUSINESS
FOR THE RECORD
REAL ESTATE DEALS
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE BREAKFAST
OUT AND ABOUT
SNAPS

Crains New York - July 29, 2013