Principles of Risk Management and Insurance, 13th Edition

Business Income Insurance

As a result of a direct physical damage loss to covered property, business firms often experience an indirect loss such as the loss of profits, rents, or extra expenses during the period of restoration. Business income insurance (formerly called business interruption insurance) is designed to cover the loss of business income, expenses that continue during the shutdown period, and extra expenses because of loss from a covered peril.

Insurance Services Office forms are available to insure business income losses:⁸

• Business income (and extra expense) coverage form

• Extra expense coverage form

Business Income (and Extra Expense) Coverage Form

A business income (and extra expense) coverage form is used to cover the loss of ...