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Article: Is There Coverage for Partial Business Interruption?(Brief Article)
- Article from:
- Claims
- Article date:
- December 1, 1999
- Author:
CopyrightCOPYRIGHT 1999 Insurance Week, 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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Issue: Is there a "suspension of 'operations'" as required by a business interruption policy when there is a partial but not a total interruption of business? For example, suppose the french fryer at McDonald's goes down at lunch hour?
Analysis: The policy promises to pay for lost income "due to the necessary suspension of ... 'operations.'" The common meaning "suspension" or "suspend" is to stop temporarily. A literal reading of the policy, therefore, requires that operations, defined as "business activities occurring at the described premises," actually cease before there can be a compensable business interruption loss.
What are "business activities?" ...