WCBJ
WESTCHESTER COUNTY
BUSINESS JOURNAL
YOUR only SOURCE FOR regional BUSINESS NEWS | westfaironline.com
December 3, 2012 | VOL. 48, No. 49
john golden
Paper avalanche Insurers buried by hurricane claims BY TARICE L.S. GRAY tgray@westfairinc.com
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will hold a ground breaking ceremony Dec. 5 on a 130-room, 88,000-square-foot Cambria Suites hotel at 250 Main St. next to the City Center parking garage. The hotel is scheduled to open in summer 2013. Part of the Metropolitan Plaza mixed-use redevelopment at 250-270 Main St., the modular construction project also will include 35,000 square feet of retail space on two floors below the
any businesses in the area are still living under Hurricane Sandy’s cloud as they navigate the next phase of recovery: the insurance claims process. There are a suffocating number of business-related claims for those covered in the region. According to state government figures, in Westchester County alone, 265,300 businesses were impacted by the storm. Compare that with the 18,700 businesses that took a hit in Louisiana during Hurricanes Katrina and Rita and it becomes a huge issue for the insurance industry. The Stern Agency, an independent insurance firm with offices in Rockland County and New York City, has clients in Westchester, including The Capitol Theatre in Port Chester. The newly reopened theater took a financial hit after cancelling five shows scheduled for the week of and after the storm. Among other things, the company is claiming loss of business income. “It’s an insurable risk,” said Adam Stern, senior vice president of the family-operated agency. The Capitol Theatre is not alone. In fact, Stern says, the insurance industry is overwhelmed not just by loss of income claims, but flood and wind damage that have made it necessary for business owners to file property claims as well. Companies like Stern’s manage claims and 80 to 90 percent are Sandy related. “That’s the problem,” he said. “There’s such an abundance, we’re having a hard time getting adjusters. Adjusters for carriers are coming from Canada, even London, to handle claims.” The agency filters 90 percent of their claims for commercial clients mostly in the New York and New Jersey area. Stern said he remains hopeful that things will quiet down by the new year, but other insurance agents aren’t so sure. Insurance industry professionals are well aware of the mounting cost of the damage done by Hurricane Sandy. Gov. Andrew Cuomo’s office completed a detailed statewide
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On the rise in White Plains BY JOHN GOLDEN jgolden@westfairinc.com
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owntown White Plains will see construction cranes and crews this winter as an international franchisor brings a new hotel brand to the county in a $37 million joint venture with a veteran hotel operator. Choice Hotels International Inc., based in Silver Spring, Md.,
Lending a hand • 9
Meet a master • 27