The ISO business income form(s) includes coverage for loss arising out of a civil authority prohibiting access to the insured’s premises due to direct damage by a covered peril to property at that location or elsewhere. However, what if the civil authority doesn’t specifically prohibit access to the insured’s property, but rather to the insured’s…
In a number of recent hurricanes, civil authorities ordered mandatory evacuations before the storms made landfall. The ISO Business Income form applies to losses arising from orders of civil authority under certain conditions. The coverage question is whether the storm has to hit first before coverage is triggered. If not, how close to the subject…
This question was posted to our “Ask an Expert” service from a Big “I” member: “What is the business Income exposure for a nonprofit organization? We understand the extra expense component but are having trouble with the business income part.” Keep reading to learn that business income is often a LOT more than just lost…
An apartment building is located in an area where a building ordinance mandates a certain amount of parking space per unit. As a result, if the building was rebuilt at this location, it would have fewer units to allow space for more parking, thus resulting in a loss of rental income. Is there an Ordinance…
The tragic December 2007 shooting of innocent shoppers at an Omaha, Nebraska shopping mall brought two quick questions to the VU “Ask an Expert” service. The entire mall was closed for 2-3 days during the peak holiday season and several stores were closed for two weeks, not reopening until the week prior to Christmas day.…
In 2003, Safeco published the results of a survey of small business owners indicating that over half of them do not have business income coverage. Why do so many businesses do without this critical coverage? More important, what can we do about it? In this article, we’ll look at some of the reasons why businesses…
An ice and windstorm shut down a 24-hour restaurant due to off-premises power failure. The power was restored fairly quickly but a 6 p.m. to 6 a.m. curfew was imposed on the city. Because of prep and clean-up time, the restaurant could only be open from 8 a.m. to 4 p.m., resulting in a significant…
Business income insurance covers net income and continuing expenses while a business is interrupted due to a covered loss. What if the business would have been operating at a financial loss during this period…does the negative net income reduce the recovery? What if the business was losing more money than its continuing expenses…might it recover…
The ISO Business Income program has a Monthly Limit of Indemnity option that allows the entry of factors of 1/3, 1/4, or 1/6 on the declarations page. Does this mean you have 3, 4, or 6 months worth of coverage? In addition, how does coinsurance work with this option and why is the option even…
An entertainment center generates much of its income from the many contracts it has with various groups. If there was a major loss and the groups cancelled their contracts and went to other facilities, would there be any business income coverage?
