Daniel E. Kaplan Speaks on the Most Common Mistakes Business Owners Make When Filing Hurricane Claims

Daniel E. Kaplan has a keen eye for what separates businesses that recover swiftly from those that remain entangled in insurer disputes long after a hurricane has passed. From his perspective, the answer lies in the quality of preparation brought to the claims process itself.

Wind, flooding, storm surge, and power outages compound one another, and the errors made when filing a claim carry consequences that surpass the initial settlement affecting liquidity, coverage access, and long-term resilience.

Underestimating the Full Scope of Covered Damage

One of the most consequential errors business owners make following a hurricane is narrowing their assessment of loss too quickly. Visible damage commands attention to things like breached rooflines, shattered windows, and waterlogged interiors, but secondary and latent damage often accounts for a significant portion of total loss.

Moisture intrusion, compromised foundations, and electrical systems carrying embedded risk surface weeks after a claim is filed, frequently after initial settlements have already been reached. Owners who accept early assessments as comprehensive often forfeit recovery on damage genuinely covered under their policy. Kaplan suggests engaging forensic engineers and building specialists before any documentation is considered complete.

Failing to Understand Policy Language Before a Loss Occurs

Commercial property policies governing hurricane claims are not uniform, and hurricane deductibles calculated as a percentage of insured value can produce obligations far larger than owners anticipate.

Named-storm triggers, flood exclusions, and sublimits for specific property classes can dramatically alter the financial landscape of a claim. Kaplan points out that the most avoidable surprises arise from provisions present in the policy all along.

“Policy language governs outcomes,” he says. “Business owners who understand their coverage before a storm strikes are in a fundamentally different position than those who encounter it for the first time during a claim.”

Routine policy review, conducted annually and well in advance of hurricane season, pays dividends when a claim must be filed under pressure.

Neglecting Documentation Before and During the Storm

Business owners who have not compiled a comprehensive inventory of property, equipment, and contents prior to a storm face a significant challenge when substantiating loss. Reconstructing asset records after damage has occurred is time-consuming and frequently incomplete.

Pre-storm documentation should include photographs, video, purchase records, appraisals, and financial statements establishing the baseline against which interruption losses will be calculated. Materials should be stored in a secure, off-site or cloud-based location.

In the immediate aftermath, documentation responsibility intensifies as every interaction with contractors and adjusters should be logged, photographs captured before cleanup begins, and mitigation costs tracked meticulously, as many policies provide reimbursement for these expenditures.

Accepting the First Settlement Offer Without Scrutiny

Insurance adjusters perform their assessments under significant caseload pressure following a major hurricane. Estimates completed quickly, relying on standard unit costs, may not reflect local labor shortages, material price increases, or the complexity of a given property. First settlement offers, though presented as final, are frequently negotiable and often fall short of covered loss.

Owners who accept initial offers without independent review regularly leave meaningful recovery on the table. Engaging a public adjuster or coverage attorney provides an independent basis for comparison.

“The first number presented in a claim negotiation is rarely the final, appropriate number,” Kaplan explains. “Owners who treat that offer as a starting point tend to recover more completely.”

Mismanaging Business Interruption Claims

Business interruption coverage is among the most valuable components of a commercial hurricane policy and among the most frequently mishandled. Unlike property damage, interruption losses must be demonstrated through financial analysis, and the burden of proof rests with the insured.

A common mistake involves underestimating the recovery period. Owners base claims on overly optimistic timelines, failing to account for permitting delays, contractor availability, or the extended absence of key customers. When the actual recovery period exceeds projections, the indemnity period may be exhausted before operations are restored.

Kaplan encourages working closely with forensic accountants experienced in catastrophic loss to structure the financial narrative in terms that align with policy requirements.

Delaying the Claims Process and Missing Critical Deadlines

Hurricane recovery places enormous demands on business owners simultaneously, and the claims process can feel like something that will wait until other priorities are managed. That assumption carries real risk.

Commercial policies impose notice requirements and documentation deadlines that are strictly enforced. Waiting too long can be characterized as a failure to comply with policy conditions, giving carriers grounds to limit recovery.

“Timeliness is a structural element of claims management,” says Kaplan. “The notices submitted promptly and the records preserved in real time form the infrastructure of a successful claim. Delays erode that infrastructure in ways that are very difficult to reconstruct later.

Overlooking Contingent and Indirect Losses

Modern commercial operations are embedded in networks of suppliers, logistics partners, and utilities. Hurricane damage to any one of these external dependencies can disrupt a business even when its own facility has emerged intact.

Contingent business interruption coverage addresses this exposure, but owners unaware of its scope frequently discover the gap only after a loss has materialized. Civil authority coverage applies when government orders restricting access cause interruption without direct physical damage, and following a major hurricane, those orders can remain in effect for weeks.

Hurricane claims are not administrative formalities. They are structured negotiations that reward preparation, documentation, and clear understanding of policy mechanics. The organizations that recover most fully are those that treat preparedness as an ongoing discipline rather than a seasonal checklist.

Daniel E. Kaplan‘s perspective is grounded in that principle. Recovery after a catastrophic storm is not simply a matter of endurance. It is a function of the decisions made long before the first bands of wind made landfall.

Daniel E. Kaplan is a risk management and insurance consultant whose work has concentrated on helping property owners, executives, and institutional leaders navigate the financial aftermath of severe weather events. His insight into post-storm claims strategy has informed how organizations across sectors approach recovery with greater precision and fewer costly missteps.

Disclaimer: The information presented in this article is for educational purposes only and does not constitute financial, legal, or insurance advice. Readers should consult a qualified professional regarding their individual circumstances.