Baton Rouge Law Firm Sues Insurer for Katrina Recess

By William Murphy

Published on October 24, 2006

Kean Miller is seeking $118,118 under a business-interruption policy it holds with National Fire Insurance Co. Business-interruption policies typically cover lost profits and pay for normal operating expenses, such as salaries and utility costs, incurred when a disaster forces closure of a business. According to a Kean Miller representative, approximately 100 lawyers and numerous paralegals could not work on the day Katrina hit.

Although National Fire Insurance Co. paid for Kean Miller's lost business income at its Lake Charles and New Orleans offices, the lawsuit says the insurer has not covered the Baton Rouge losses because the State Police did not bar access to the firm's offices there. The lawsuit contends the policy does not stipulate that requirement.

Kean Miller maintains it is covered because Governor Kathleen Blanco declared a state of emergency in Louisiana, and State Police recommended that residents of East Baton Rouge stay at home to avoid dangerous road conditions.

A National Fire Insurance Co. spokesperson declined to comment on the lawsuit.

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