Provide four sources of Business Interruption losses and an example of each. - ANSWERi) Physical damage to business
example: Fire destroys business and customers cannot make purchases
ii) Failure of public utilities
example: Ice storm damages power lines and power cannot be restored for several
...
Provide four sources of Business Interruption losses and an example of each. - ANSWERi) Physical
damage to business
example: Fire destroys business and customers cannot make purchases
ii) Failure of public utilities
example: Ice storm damages power lines and power cannot be restored for several
weeks. This results in sales at the business to plummet
iii) Transportation related accidents
example: Railcar containing hazardous gas overturns causing evacuation of town.
As a result, of this railcar accident, sales at business cease.
iv) Physical damage to neighbouring premises
example: Your client, who is a tenant in a shopping mall, experiences drop in
sales when anchor store burns to the ground
Identify five characteristics common to all Business Interruption policies and
briefly explain each. - ANSWERi) Insure same perils covered by property insurance
Explanation: Coverage on the property policy triggers coverage under business
interruption policies
ii) Contracts of indemnity
Explanation: Claim payments based on amounts business could have earned had
the loss not occurred
iii) Indemnity period not limited by policy expiration
Explanation: When losses occur during policy period, coverage will not end upon
policy expiration.
iv) Payment for expenses to reduce loss insured provided insurer saves more in
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