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.
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
In the case that the factory that supplies the materials needed to make the finished product has a fire, however, the fire would be a covered contingency if the receiving factory has dependent property business income coverage
For example, if a business owner has certain high-valued merchandise insured under a separate commercial policy, and that merchandise is vandalized (a covered cause of loss) requiring several weeks to replace and causing a business income loss, the business income coverage
would apply as long as the high-valued merchandise was on the described premises.
Aspects of business income coverage
are complex A much more comprehensive treatment of the subject can be found in The Business Interruption Book, also published by the National Underwriter Company.
The third primary type of coverage is business income coverage
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.
Dependent properties--An ISO broadening of BOP business income coverage
to include coverage for business income because of a covered cause of loss at a vendor's or supplier's premises.
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 uninterrupted operation of facilities is a top priority for camp owners and that is why comprehensive and affordable property and business income coverage
is so important.
Extended Business Income Coverage
Period - 180 days (double the industry standard)
However, the policy also states that the business income coverage
is only available during the period of restoration, which does not begin until 24 hours following the time of direct physical loss.
Business interruption insurance is divided into business income coverage
that would have been earned based on past financial performance, and extra expense coverage designed to take care of costs beyond normal operating expenses.