Even though the unfortunate result Katrina left on Biloxi, it has one single positive aspect. Two months before the hurricane, the city signed a business interruption insurance policy that covered casino tax revenue losses for six months. The coverage cost Biloxi $92,000 dollars and stands to gain $10 million dollars.
As this policy cannot be renewed, Mayor Holloway is trying to get a new one with no luck yet. The only insurer that has offered a suitable policy charges more than $1 million dollars and covers the city only if a category 5 storm hits Biloxi and 50 miles around.
Last year, Biloxi had $30 million dollars in property insurance, of which $10 million covered for wind, fire and flood, and the other $20 million for all the rest except flood. A settlement is about to be reached, according to city authorities. The city has already received $7,5 million dollars for its business interruption policy and still continues the fight for the remainder.
Source: MediaGambling
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