Commercial LinesQuestion 455 of 531

Business income (business interruption) coverage is designed to pay for:

a.The cost of replacing inventory stolen in a theft
b.Lost net income and continuing expenses while shut
c.Liability claims brought by injured customers on site
d.The physical repairs to the damaged building itself

Explanation

Business income coverage replaces the net income the business would have earned and pays continuing normal operating expenses (such as payroll and rent) during the period of restoration after a covered physical loss suspends operations. It addresses the indirect financial consequences of a loss, complementing the direct property coverage that pays to repair or replace the damaged property itself.

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