Commercial PropertyQuestion 104 of 215
A wildfire damages neighboring properties (but not the insured restaurant's building). Local police bar access to the entire block for two weeks. Which extension under the Business Income form responds to the restaurant's lost income during this access prohibition?
a.Extra Expense
b.Civil Authority
c.Newly Acquired Property
d.Pollutant Cleanup
Explanation
The Civil Authority extension pays lost business income (and necessary extra expense) when access to the described premises is specifically prohibited by order of a civil authority because of direct physical loss to other property within a stated distance of the premises caused by a covered cause of loss. The standard form provides this coverage for a limited period (typically four consecutive weeks, beginning after a 72-hour waiting period under newer editions).
Law Reference: ISO Business Income Coverage — Civil Authority extensionPractice all 215 questions free — no signup required.
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