Answer: Business income coverage
is for direct loss of income; if the tenants no longer paid rent while the building was being repaired, that would be business income.
There's business income coverage
and there is extended loss of business income coverage
(4) While BOP policies with 12 months of unlimited business income coverage
seem to avoid this problem, the 12-month time limit can be bad new for some insureds.
Indirect loss is also known as time element protection, business interruption and business income coverage
. As defined, business income is "insurance covering loss of income suffered by a business as a result of not being able to use property damaged by a covered cause of loss during the time required to repair or replace it." It is often paired with extra expense protection on many property policies.
* Property policies only provide loss of business income coverage
if there was direct physical damage caused to your property, and not caused by hackers that shut down your website.
One might suspect that few had any sort of business income coverage
, and their only recourse would be claims against BP or its drilling partners.
This statement limits business income coverage
to the business owner's actual losses incurred during the period of restoration.
If this data is not property, the loss doesn't meet the first requirement for business income coverage
and no business income loss is payable.
ISO rules for business income coverage
define a mercantile or nonmanufacturing risk as "one in which the business consists principally of the sale or storage of merchandise, or the furnishing or rendering of a service." Some businesses provide services with little or no sale of merchandise.
The third primary type of coverage is business income coverage
. This insures that landlords will continue to receive rent when damage occurs to tenant spaces, relieving tenants of their obligation to pay rent to the landlord.
Business income coverage
can also benefit some commercial building owners.
Bottom line, the amount of business income coverage
purchased should be enough to allow the business to reestablish itself on a preloss basis.
This coverage limits business income coverage
to the insured's actual losses incurred during the period of restoration.
The current standard ISO business income coverage
form continues to permit insured businesses to differentiate between these two types of payroll and insure either both or just the executive salaries.
The business income coverage
form issued by PMA provided that it would "pay for the actual loss of business income you sustain due to the necessary suspension of your `operations' during the `period of restoration.' The suspension must be caused by direct physical loss of or damage to property at the premises described in the declarations." (Emphasis added.) The insured argued that the only premise described in the declarations was premise 001, including all of its buildings at the location.