US: Commercial property insurance covering loss of income suffered by a business when damage to its premises by a covered cause of loss causes a slowdown or suspension of its operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property. It may also be extended to apply to loss suffered after completion of repairs for a specified number of days. There are two Insurance Services Office, Inc. (ISO), business income coverage forms
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Insurance protecting the income derived from an insured’s business activities when curtailed by a covered peril. Coverage is often combined with extra expense insurance, which provides coverage for reasonable extra expense the insured undertakes to expedite return to business operations.
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Insurance protection the income derived from an insured’s business activities when curtailed peril. Coverage includes reasonable extra the insured undertakes to expedite return to business operations.
Insurance Encyclopedia
Business income coverage form (Property Insurance)
A form that provides coverage against losses that occur due to property damage, for example, loss of business.
Business Income Insurance
Commercial coverage that reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage due to a covered peril, such as fire. Business interruption insurance may also cover financial losses that occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises. Depending on the policy, civil authorities coverage may start after a waiting period and last for two or more weeks.Two other forms of coverage are commonly added to business interruption policies:
Similar to the additional living expense coverage in the homeowners policy, extra expense covers the additional expenses associated with continuing operations at a different location when the primary location has been damaged by a covered peril. For example, most state laws require banks to remain open on most business days. If a bank were to burn, it would need to open again as soon as possible at a temporary location.
Extra Expense
Contingent Business Interruption
This coverage includes damage due to an insured peril to a firm’s customers, suppliers, or anchor stores. For example, if an automobile parts manufacturer has a long-term agreement to supply parts to a local Toyota plant and that plant ceases production because of a fire, the contingent business interruption coverage for the supplier would cover lost profits. Anchor store coverage protects small retailers who locate in a shopping center with a supermarket or other anchor store. If the anchor store is damaged by an insured peril, the smaller retailer is compensated for the reduced traffic.
Business income, dependent properties
Covering loss to an insured when the operations of a key supplier, customer, or leader property on which the insured’s operations are dependent, are shut down by a covered peril. Also referred to as contingent business income.
Business Insurance
US: A policy which primarily provides coverage of benefits to a business as contrasted to an individual. It is issued to indemnify a business for the loss of services of a key employee or a partner who becomes disabled.
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MEDICAL,USA: Insurance that insures the business rather than an individual person.
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Insurance written for businesses. Can refer to health insurance or life insurance written for the principals of a company.
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Policies written for business purposes, such as key employee, sole proprietorship, partnership and corporation.
Business Interruption
Temporary shutdown of an organization’s activities due to physical damage to its property or others property.
Business interruption (Liability Insurance)
Interruption of day-to-day dealings by a business due to a loss.
Business Interruption Insurance
Business Interruption insurance for a business owner against losses resulting from stoppage of business because of fire or other insured peril. The insurance provides reimbursement for lost net profits which would been earned during the period of interruption and necessary standing expenses such as salaries, taxes, rents and other necessary continuing expenses during this shutdown within the limits of the Policy.
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MEDICAL,USA: Insurance policy that covers a business owner from losses during a time when the business is not operating due to fire or other peril. The insurance provides reimbursement for salaries, taxes, rent, necessary continuing expenses, and net profits that the business would have earned during the interrupted period.
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US: Protection for a business owner against losses resulting from a temporary shutdown because of fire or other insured peril. The insurance provides reimbursement for lost net profits and necessary continuing expenses.
Business interruption insurance (Liability Insurance)
Insurance that covers lost income due to an interruption in business caused by a covered loss.
Business Interruption Insurance Covers
loss of gross profit following reduced turnover resulting from, and occurring after, insured property damage. The gross profit indemnity enables the business to pay its standing charges, including payroll, and recover its net profit during the indemnity period, the period selected as being the time needed to restore normal trading levels. Specified working expenses are not at risk and are therefore deducted from turnover before arriving at the gross profit, the item to be insured. The policy also covers increased cost of working, e.g. renting alternative premises, subject to the cost not exceeding the amount of loss thereby avoided. Additional increased cost of working can be insured. The policy may extend to interruptions caused by damage at the premises to customers or suppliers, or resulting from loss of attractions, murder, suicide, food poisoning or infectious/contagious diseases. See AUDITORS’ CHARGES; SPECIAL CIRCUMSTANCES CLAUSE; CUSTOMERS’ EXTENSION; MATERIAL DAMAGE PROVISO; SUPPLIERS’ EXTENSION.