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Article: "Suspension" vs "interruption": what a difference a word makes.(POLICY NOTES)
- Article from:
- Insurance Advocate
- Article date:
- April 21, 2008
- Author:
CopyrightCOPYRIGHT 2008 CINN Group, Inc. 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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In business interruption coverage, is "suspension" different from "interruption?"
The 1986 ISO simplified-language forms [1] changed the title of "business interruption" forms to "business income," changed the method of calculating coverage and loss from a top-down to a bottom-up calculation, and changed the wording in the insurance agreements
It's the change in the insuring agreement wording that we want to look at. Prior to 1986, the business interruption form insuring agreement read, in part:
"This policy insures against loss resulting directly from necessary interruption (emphasis added) of business caused by damage to or destruction of ...