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Article: Business interruption insurance can save the day--or not: it can depend on the fine print.(Focus: Insurance & Employee Benefits)
- Article from:
- The Mississippi Business Journal
- Article date:
- July 17, 2006
- Author:
CopyrightCOPYRIGHT 2006 Dolan Media Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Biloxi hit the jackpot when two months before Katrina the city spent $92,000 to purchase $10 million worth of business interruption insurance to cover lost casino revenues. Some say that insurance "saved" Biloxi. Certainly, the $7.5 million the city has received thus far in insurance proceeds has gone a long way to help cover gaming revenue losses.
Biloxi Mayor A.J. Holloway started working on finding the coverage in January 2005 after hearing about a business interruption insurance policy for lodging taxes in place for Orange Beach, Ala. With Biloxi's largest revenue tax stream coming from gaming revenues, accounting for 35% of the city's budget, it was apparent ...