Commercial PropertyQuestion 115 of 215
Under the Business Income Coverage Form, when does the 'period of restoration' BEGIN, and when does it END?
a.It begins on the date the policy is issued and ends when the insured cancels the policy
b.It begins (after any waiting period) on the date of direct physical loss and ends on the date the damaged property should be repaired, rebuilt, or replaced with reasonable speed and similar quality, or on the date business is resumed at a new permanent location, whichever is earlier
c.It begins when the insured submits a sworn proof of loss and ends 30 days later
d.It begins on the date of loss and ends exactly 12 months later, no matter the actual repair time
Explanation
The period of restoration begins immediately after the direct physical loss (subject to any stated time deductible/waiting period in newer editions, commonly 72 hours) and ends on the earlier of (a) the date the property should be repaired, rebuilt, or replaced with reasonable speed and similar quality, or (b) the date the business is resumed at a new, permanent location. The form may include an Extended Business Income period after that, but the period of restoration itself follows this definition.
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