Business Income Insurance Covers Continuing Expenses Without Reduction for Insured’s Operating Loss

By Richard Wolf | January 9, 2018

  • January 9, 2018 at 3:06 pm
    CTE says:
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    This is discussed in length in the CIC Property Institute. The way it is interpreted now, and taught, many insureds are paying for a coverage they will never be paid a single dollar on. If they can’t evidence there was a loss of profit- then the payout is $0. So essentially, a company that generates $1,000 a week- but has $2,000 a week expenses is currently operating at a $1,000 a week loss. After their fire…they are generating $0 a week, they still have a $2,000 a week expense, now they are losting $2,000 a week instead of $1,000. Business income payout should have been $1,000 in my opinion, but the way it is now, their payout is $0.

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