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Article: Basics of business interruption insurance: the ins and outs of tricky coverage: it's important to know and interpret policy language, exclusions and coverages in order to state a valid claim under this insurance.
- Article from:
- Defense Counsel Journal
- Article date:
- July 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 International Association of Defense Counsels. 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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Business interruption insurance is "`designed to do for the business what the business would have done for itself had no loss occurred.'" (1) Thus, this coverage provides a vehicle to recoup earnings lost as a result of an occurrence of a covered risk that interrupts the insured's business operations. (2) The coverage may be purchased as an endorsement to a property insurance policy or as a separate insurance policy. The coverage form typically provides insurance against loss of earnings and also may cover other costs, including payroll, rent, insurance premiums, utility bills and taxes. Business interruption insurance typically requires proof of covered physical loss to ...