Business Income is the most important property coverage. The problem is, some agents only do half the job when protecting the insured’s income loss exposure. There are two loss periods the business income policy needs to cover.
Business income coverage responds only when certain conditions are met. Simply losing business income is not enough to trigger coverage. This article explores the conditions that must be met using a water contamination incident in Corpus Christi, TX as the backdrop.
A Louisiana agent asks, “I am stumped on a couple of business income issues, and would appreciate your help. First, I’m trying to figure out the difference between Extended Business Income, Extended Period of Indemnity, and Maximum Period of Indemnity. Second, how do all these differ from ‘regular’ Business Income? I realize these are probably…
The ISO CP 00 10 has a coverage gap for property in undeclared buildings that does not exist in their BOP. In this article, VU faculty member Mike Edwards explores whether the same CP gap exists for business income coverage.
Is the payroll of hourly works compensable under the ISO CP 00 30 business income form? This situation is another variation on a previous VU article about whether a continuing expense is “necessary,” as required by the ISO CP 00 30. Our consensus continues to be that the INSURED, not the adjuster, is in the…
Following a covered loss, a replacement compressor was rented at the cost of about $100 a day. By the time repairs were made, the insured incurred $6,000 in rental costs. Because of this rental, the insured had no real loss of business income. The adjuster denied the claim for the rental because the insured had…
Underinsuring property is a problem that can result in a significant coinsurance penalty. However, underinsuring business income is particularly troublesome given that coinsurance penalties can be catastrophic. This is particularly true when a business experiences sales and profits far beyond those anticipated or if the business is new and really doesn’t know how it will…
If a business is operating at a loss, do they need business income coverage? The answer is usually “yes,” though they may or may not be able to recover from it.
High temperatures and drought conditions caused a golf course, despite its mitigation efforts, to lose most of its greens. A severe storm downed dozens and dozens of trees on a golf course. In both situations, business income was reduced or suspended for several months. Is this covered under standard ISO forms?
Agents who’ve experienced a hard market know that claims are often scrutinized much closer than they are in a soft market. Unfortunately, there are circumstances that sometimes lead to the denial of claims that are covered regardless of market conditions. Here’s an example of what you may be seeing more of in the months to…