Like Water For Chocolate: Insurer Prevails Over Chocolatier In Hurricane Sandy Claim

November 8, 2017
Afua S. Akoto - Saxe Doernberger & Vita, P.C.

Recently, a New Jersey Magistrate ruled that an insurer did not have to provide coverage for a chocolatier’s property damage and business interruption losses due to Hurricane Sandy.

Madeline Chocolate Novelties Inc. (Madeline), a family-owned chocolatier in Queens Rockaway Beach, held a one-year all-risk policy with Great Northern Insurance (Great Northern). The policy contained a flood exclusion and a windstorm endorsement. When Hurricane Sandy hit in October 2012, Madeline suffered extensive damage and ceased operations during the ensuing holiday season. The chocolatier claimed $40 million in property damage and $13.5 million in business interruption losses and sought coverage under its policy. Great Northern paid just under $4 million and denied the remainder of the claim, citing the policy’s flood exclusion.

Ms. Akoto may be contacted at


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