Attorneys Discuss Liability Insurance Coverage for Sandy Litigation

Homeowners, businesses, and municipalities in the tri-state area continue to rebuild and rebound from Superstorm Sandy. Often, large-scale devastation and destruction are followed by lawsuits against individuals and entities allegedly responsible for protecting, managing, and maintaining the damaged buildings.

A handful of such lawsuits have been recently filed in New York City on behalf of residents of large residential buildings. If these suits are predictive of future legal actions, individuals and entities charged with protecting and managing damaged buildings can anticipate lawsuits claiming monetary damages caused by inadequate preventative measures before Sandy, and insufficient recovery measures thereafter.

Additional allegations pled in these initial suits include negligence, permitting unlawful entry into residential buildings, and failing to mitigate damages.

These recent lawsuits and expected future lawsuits are reminders of the significant alleged liabilities that building owners, real estate development and management companies, and volunteer condominium and cooperative board members face in Sandy’s aftermath.

Even if Sandy-related lawsuits are ultimately unmeritorious, potential defendants likely will incur significant legal fees disproving their liability. For those businesses facing potential liability from negligence and breached duties claims, liability insurance may be an important asset to help offset defense costs and settlement or judgment payments.

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