Business Interruption: Highlighting Impacts of the 42nd St. Structural Emergency

On July 7, 2026, construction workers inside the 37-story Midtown Manhattan tower at 235 East 42^nd Street reported cracking and identified structural support columns buckling on the 21^st and 22^nd floors. In response, emergency officials established a multi-block “frozen zone” between 40^th and 45^th Streets and between First and Third Avenues, which required the evacuation of workers, hotel guests, and residents in the area. Even days later, the “frozen zone” still applied to five buildings in the area.  

In situations such as what is happening  in New York City, impacted businesses face disrupted operations and uncertainty about when they may return to normal. To recover losses resulting from these unforeseen events, businesses may turn to their Business Interruption insurance policies.   

Events like this also highlight how construction-related risks can extend beyond the project itself. For additional perspective, read our article, “Adding Stories, Adding Risk, which explores risk management considerations during complex building projects 

Tips for Approaching Business Interruption Claims 

In the period following an unforeseen event, actions taken by the affected businesses can significantly impact the success of a Business Interruption claim. During this time, documentation is critical. Businesses should: 

• Photograph any damage.
• Maintain records of communication with property management and government agencies.
• Retain invoices, receipts, payroll records, and financial documents such as profit and loss statements.
• Retain emails or other correspondence with customers impacted by the interruption.

Proper documentation during the impact period can help support your claim and reduce the time and effort required to collect. Additionally, impacted businesses should consider engaging outside counsel and experts to assist with the documentation and preparation of its claims. 

How Vertex Can Help 

Navigating business interruption insurance can be overwhelming, especially while dealing with other impacts of these serious situations. Vertex’s experts have deep experience supporting clients through this process and have established best practices to make the process as seamless as possible. 

The resolution of commercial disputes is at the core of Vertex’s practice, and our business is built to mobilize quickly when the stakes are highest. Our multidisciplinary teams are experienced in analyzing business operations and financial conditions and developing business interruption and lost profits claims using appropriate economic damages theories and approaches. We have prepared and submitted many claims to insurance carriers and worked for insurance carriers analyzing large business interruption claims.  

Vertex delivers insightful recommendations and solutions throughout all phases of the dispute process, from claims development through resolution. If the dispute advances to arbitration or trial, Vertex’s experienced professionals provide expert reports, trial exhibits, deposition testimony and, if necessary, testimony at trial. 

For more information on we can support you with dispute and expert witness services, submit an inquiry below.