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Article: Business interruption can be tough to figure: without direct physical damage to covered property, coverage is not triggered.(FC&S On Lines)(insurance)
- Article from:
- National Underwriter Property & Casualty-Risk & Benefits Management
- Article date:
- August 2, 2004
- Author:
CopyrightCOPYRIGHT 2004 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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JUDGING BY THE NUMBER and types of questions we receive from FC&S subscribers, business interruption insurance is one of the more difficult coverages to comprehend.
While some other coverages may be as simple to interpret as a paint-by-numbers picture, business interruption insurance is more akin to a Picasso--mechanical skills alone are not enough to thoroughly understand it.
Business interruption insurance requires three elements to trigger coverage:
(1) There must be an actual loss of business income.
Business income is defined as net income and continuing operating expenses. To determine if there has been a loss of business income, ...