While the full extent of insurance losses incurred a sa result of Hurrincane Irene are not yet known, the retail industry appears to have suffered a higher proportion of the expected losses  from a commercial property insurance standpoint. Total insured damages from Irene, which made U.S. landfall in late August, are estimated at $3 billion to $7 billion.
 
The losses suffered by the retail industry from Irene were exacerbated due to the timing of the storm, which struck during the critical back to school shopping period.

Some retailers expected to earn as much as 30 percent of their monthly sales during the last week of August. Due to the hurricane, many of those sales were lost, affecting retailers’ margins. Some retailers were forced to discount items more heavily to move excess inventory and get customers back into the stores.

For some companies, the lost profits associated with Irene may be partly recoverable via their commercial property policy. How successfully retailers recover lost profits under their policies will depend on the amount of coverage provided and—more importantly—how the actual contract language was written. Although a named storm, the losses generated by Hurricane Irene were unique.