Shapiro, Lifschitz & Schram

“Their finesse is unparalleled, not to mention their good bedside manner.”

Marty Saturn – Executive Vice President, Meisel Capital Partners

“Don’t Neglect Business Interruption Insurance in Construction Contracts,” Construction Executive

In an article published on July 6 in Construction Executive, Barry Fleishman discusses business interruption insurance in construction contracts. “Construction contracts generally provide clarity and attention when it comes to insurance requirements for property damage, but insurance requirements for business interruption loss are often left on the cutting room floor,” he explains.

In the article, Fleishman illustrates the importance of considering business interruption insurance and the factors that may determine the extent of loss. “It is not difficult to predict the value of loss that can result from direct property damage, and the full extent of the loss is capped at the total replacement value of the construction project,” Fleishman states. Due to the extent of unknowns related to catastrophic property damage and unpredictable recovery time, estimated business interruption loss cannot be capped and remains a highly variable risk.

Business interruption insurance requires proof of a connection between losses claimed and covered property damage, including the extent of the damage to the property and the resulting time lost due to the interruption of the construction project. “Additionally, there will be questions concerning the amount of the lost profits that have been asserted and the manner by which those lost profits were calculated,” Fleishman says. He explains in the article how to prepare for claiming business interruption loss, including the documentation required and expenses involved.

For the full article, click here.

Did You Know . . .

Members of the SLS trial group have tried in excess of 50 jury trials and 75 bench trials?

The SLS construction group has worked on sports stadiums across the country including Orioles Park in Baltimore and Paul Brown Stadium in Cincinnati?

The SLS construction group has worked on power plant projects across the country?

In 2007 SLS was selected for an Honorable Mention as one of the Best Places To Work in Washington DC?

Ron Shapiro, Steve Schram and Judd Lifschitz have all been selected as SuperLawyers by Law and Politics?

The SLS office building is an historic townhouse constructed in the late 1800s?

SLS has been selected by Martindale-Hubbell as a Preeminent Law Firm?

SLS trial lawyers have argued appeals in the U.S. Circuit Courts of Appeal for the 4th, 5th, 9th, D.C. and Federal Circuit?

SLS trial lawyers have been lead trial counsel in cases in Arizona, California, District of Columbia, Florida, Louisiana, Maryland, New Jersey, New York, North Carolina, Oregon, Texas, and Virginia, - to name just a few?

Virtually all the cases that SLS trial lawyers mediated have been favorably settled at mediation?

The transactional group at SLS was lead counsel on one of the largest, most complex mixed-use projects in downtown Washington, DC involving 4 lenders and 6 property owners?

In appreciation for the outstanding efforts of each of its employees during 2007, SLS gave everyone (attorneys, paralegals, and staff) a 4 day/3 night expense paid trip to Key West, Florida?

The transactional group at SLS has represented tenants in more than 200 retail leases in the Mid-Atlantic region?

Every attorney in the transactional group at SLS has at least 15 years experience?

The transactional group at SLS has represented developers in the purchase, construction, financing and/or sale of more than 75 multi-family apartment projects?

The transactional group at SLS has represented real estate investors and developers with respect to property in Pennsylvania, West Virginia, Delaware, Maryland, the District of Columbia, Virginia, North Carolina, South Carolina, Georgia, Florida, Texas, Tennessee, Michigan and the U.S. Virginia Islands?

Attorneys in the transactional group at SLS have represented eight national banks in commercial real estate loans?

Attorneys in the transactional group at SLS have represented the FDIC, the Resolution Trust Corporation and several banking institutions in loan workout transactions throughout the Mid-Atlantic region?

The transactional group at SLS has represented homebuilders and commercial real estate developers in work-outs of individual loans and also for work-outs of large portfolios involving dozens of properties in several states?

The trial lawyers of SLS have numerous reported decisions to their credit?