In addition to direct loss or damage to your property, loss can occur as a consequence of the direct damage. Such indirect losses are financial in nature and result from the loss of use of the property directly damaged. Several types of coverages have been developed to address these indirect loss exposures.

Agreed Value Opt.
Under this option, your company will agree to accept the figure for business income coverage filed by you without applying the standard coinsurance requirements. Back to top

Aircraft Loss of Use
This Business Interruption coverage is written on specific aircraft to insure against loss of income due to the temporary shutdown of covered aircraft when caused by an insured peril. Back to top

Animal Loss of Use
This coverage is written to provide reimbursement for loss of use of a show horse if it is permanently disabled because of an accident. The amount of recovery is based on a percentage, listed on the policy, of the actual cash value of the horse. Back to top

Broadcasters BI/EE (CP1550)
This insurance is used to protect you against loss of income and extra expenses that arises from the interruption of your business because of damage or destruction of towers, antennas or other specified property from a covered peril. Back to top

Business Income Excl EE (CP0032)
This coverage is used to insure against loss of income (including any continuing normal operating expenses) that you experience because of a suspension of your business and/or interruption of rental income when insured property has been damaged by a covered peril. Back to top

Business Income Incl EE (CP0030)
This coverage is used to insure against loss of income (including any continuing normal operating expenses) that you experience because of a suspension of your business when insured property has been damaged by a covered peril. Under this form, extra expenses are included and rental values can be added as an option. An extended period of indemnity provision is also included to provide coverage after you resume operations until your business returns to its normal level of activities, up to a maximum of 30 days. Back to top

Campground/Park Rental Income
This coverage will insure against loss of income you derive from your campsites, and the consequential loss of related income you derive from revenue-producing property because campsites are rendered unusable because of a covered peril. This coverage is written in conjunction with standard business income insurance which protects against loss of income caused by direct damage to a covered building. Back to top

Cast Insurance
This insurance will protect against loss caused by abandonment of production, as well as extra expenses incurred in completion of filming, due to sickness or death of named artists or principals. Back to top

Catered Affairs Coverage
This Business Interruption insurance is used to protect against loss incurred from the cancellation of a catered affair because of weather, accident, sickness, death or nonappearance. It is used to insure those special events which make up a substantial portion of your annual business income. Back to top

Commercial Credit Insurance
This insurance is used to protect you against loss of income due to your customers' inability to pay their obligations to you arising from the sale, shipment and delivery of merchandise, or the performance of a service. Back to top

Commission Income Protection
This coverage is used to insure against loss of commission income when a manufacturer of goods suffers a plant or inventory loss and is unable to provide products needed to fulfill your sales contracts. Back to top

Communicable Disease Interruption
This coverage will insure against loss of income and any additional cleanup costs resulting from loss due to interruption of business caused by communicable diseases. Back to top

Contamination Shutdown
This coverage is used to insure against loss of revenue that results from a closure due to actual or suspected contamination as defined in the form. Back to top

Contingent Cargo Income
This coverage is used to provide protection against income loss that results from damage to or destruction of critical raw materials, merchandise or equipment while it is being shipped to you. Back to top

Dependent Properties (CP1508, CP1509, CP1534)
This coverage is used to insure against the drop-off of revenue and extra costs of obtaining services or supplies that arises out of the loss or damage to a non-owned and scheduled property. For example, if your primary supplier sustains damage preventing them from supplying you with the necessary product to stay fully operative, the resulting loss of income (from your shutdown) would be covered. Back to top

Event Cancellation Protection
This policy is written to protect you against loss of revenue when a designated event or season is cancelled due to a specified peril such as weather, sickness, accident, etc. Normally, such perils insured under these types of policies are not covered under standard Property forms. Back to top

Expected Profits From R & D
This insurance is used to cover the anticipated loss of earnings resulting from the destruction or loss of research and development documentation which delays a product's introduction, making it valueless. This coverage also pays for the additional expenses of recreating the documentation to minimize the delay of development and introduction of the new product. Back to top

Ext. Civil Authority Shut Down
Standard Business Interruption insurance provides limited coverage (three weeks) when interruption results from the access to your premises being prohibited by a civil authority because of damage to a neighboring premise by an insured peril. This endorsement is used to extend this period of recovery to the specified time limit. Back to top

Ext. Period of Indemnity Opt.
This option is used to extend the time of recovery allowed for under your business income coverage after you resume operations for the
scheduled period of time stated in the provision. It covers the continuing reduction of income when you require additional time to return to normal pre-loss business levels. Back to top

Extended Media Coverage (CP1529)
This endorsement is used to extend the recovery time allowed for in your Business Income coverage for losses resulting from damage to your electronic media or records for the specified additional time limit. Standard policies limit recovery to a maximum of 60 days. Back to top

Extra Expense (CP0050)
This coverage pays for the necessary additional expenses needed to continue business when a covered loss damages or destroys insured
property. Back to top

Farm Extra Expense
As with other types of businesses, your farming/ranching operation has the potential of incurring extra expenses should you experience direct physical damage loss to covered property. This coverage is used to pay for these additional expenses when caused by a covered loss. Back to top

Guest Services Coverage
This coverage is used to extend your Property Insurance to provide reimbursement to guests for expenses they might incur if they are required to move because your business suffers a loss by a covered peril. Back to top

Ill Fame or Disrepute
This insurance is designed to protect you against loss of income due to bad publicity against your service or business because of actions, litigations, accusations or similar described perils that originate from government entities or other groups or individuals. The form pays the difference between expected income and actual income earned. Back to top

Increased Period of Restoration (CP1531)
This endorsement is used to cover the additional loss of income due to the increased time needed to rebuild or repair because of local building ordinances or zoning requirements. Back to top

Lease-hold Interest (CP0060)
Many times lessees, such as you, may find they could not secure similar quarters at the same cost as that destroyed by fire. The difference between the cost of their present lease and what similar quarters would cost is the insurable interest. This coverage is used to provide you with protection from financial loss due to termination of favorable lease agreements. Back to top

Loss of Use
This section of the Farmowners/Ranchowners policy will cover additional living expenses if your home is destroyed or damaged by a covered peril. It also insures against loss of rental value if you rent the damaged property to others. Back to top

Lost Lease Protection Coverage
This coverage is used to protect you against loss of lease income when a tenant cancels their lease because of an insured loss and area lease rates have decreased. The difference between the income you would have earned from the original lease and what you can now earn is the insurable interest. Back to top

Maximum Period Of Indemnity
This Business Interruption option will pay you the lesser of the amount of loss sustained during the first 120 days after the direct physical loss, or the limit of insurance. Back to top

Mining Properties (CP1524)
This endorsement is used to modify the standard Business Interruption coverage to provide insurance for your mining operation. It can be
written in three ways:

(1) no underground coverage
(2) limited underground, where coverage is provided for direct loss of equipment, but not for loss during the time it takes to reach the equipment
(3) broad underground, where coverage is provided for direct loss plus the time it takes to gain access to the damaged equipment.
Back to top

Monthly Limit of Indemnity
This Business Interruption option will suspend your policy's coinsurance clause but limits the amount of your recovery to the monthly percentage shown in your declarations page. Back to top

Mortgage Interest Protection
This insurance coverage can be used to protect against increased mortgage costs that may result if you have to refinance in order to rebuild a covered building that is destroyed by an insured peril. Back to top

Newly Acquired Locations
This coverage is used to extend your Business Income Coverage Form to apply to newly acquired locations other than fairs or exhibitions. The amount of coverage provided under this extension is restricted to the limits and period of time specified in the form. Back to top

Parts and Service Endorsement
This endorsement is used to modify standard Business Income coverage so that it only applies to revenue generated from your parts and service operations without inclusion of income from sales of your stock. This will provide you with the needed income protection for your parts and service departments without generating unnecessary premiums from stock sales activities. Back to top

Patent/Copyright Infringement
This coverage protects you as a holder of a patent/copyright against infringement by others and pays for loss resulting from such infringement up to the limit of the contract. It covers additional legal and other expenses incurred in enforcing your patent rights. Back to top

Patent/Copyright Infringement Expense
This coverage pays for costs resulting from a patent/copyright infringement suit which prohibits you from using or distributing a product until the suit is decided. It will reimburse expenses or investments incurred including research and development, distribution and product recall coverage. This insurance is only collectable if the outcome of the suit is favorable to you. Back to top

Payroll Limitation (CP1510)
This Business Income endorsement will allow you to exclude or limit the payroll of all employees except managers, executives and specified individuals when determining your insurable income values. This reduces the limit of liability that you must carry and results in a premium savings. Back to top

Period of Restoration Reviewed
Your Business Income Coverage form includes a "period of restoration" provision that specifies the minimum period of time you must wait until your business income coverage goes into effect. Back to top

Power Limitation (CP1511)
This endorsement will allow for the deduction from income all types of utility costs except: (1) minimum power and heat needed to maintain the building and (2) usage obligations under contract. This eliminates the need to include these items among operating costs when determining insurable values thus resulting in lower premiums. Back to top

Premium Adjustment End. (CP1520)
The addition of this endorsement changes your Business Income coverage to a reporting form contract thereby allowing you to carry more insurance than is needed while paying only for the amount used. This alleviates you from trying to determine accurate future income values and reduces the chance of being underinsured or carrying excess coverage. Back to top

Product Integrity
This coverage will reimburse you for loss of a product's profits followed by a product recall and any accompanying adverse publicity. Back to top

R & D Expense Reimbursement
This insurance is used to indemnify you for loss of "research expenditures" as a result of a covered loss. The coverage also includes reimbursement for necessary extra expenses you incur in order to reduce or minimize the interruption. Research expenditures are defined as the total costs of operating your R & D department, less the costs of raw materials consumed in the research process. Back to top

Rental Value
This coverage is used to insure you against loss of income or your inability to use or rent the premises because of a covered peril. Back to top

Special Event/Seasonal Increase (CP1513)
This endorsement can be used to modify the Business Income coverage to insure special events or periods of time when there is an unusually high business income exposure that needs to be covered. It provides automatic increased coverage without worry of forgetting to add the needed additional limits to your policy. Back to top

Storm Warning Coverage
This coverage is written to provide protection against loss of revenues because of a partial reduction or total shutdown of your operations due to a severe storm warning which may not result in actual physical damage. Normal Business Interruption coverage does not apply unless actual damage occurs to the insured building(s). Back to top

Strike Insurance
This insurance is used to cover the on-going expenses incurred to continue business operations during a shutdown due to a strike. Back to top

Tax Interruption Coverage
This coverage is used to protect a government entity against loss of income due to destruction of property of others which results in loss of property tax or reduction in sales tax. Back to top

Television Breakdown
This insurance is designed to insure against the loss of revenue that results when you are unable to present a radio or television broadcast because of a covered loss. Back to top

Tuition & Fees Coverage (CP1525)
This endorsement is used to extend the Business Income coverage to include protection against loss of tuition and fees from students that results from the institution closing down because of a covered loss. If the date on which repairs are completed is 30 days or less before the scheduled opening of a new term, coverage also applies to loss of income during that term. Back to top

Tuition Refund
This coverage, distinct from Tuition Fees coverage, refunds unused fees due to class time lost when a student is absent or withdraws from classes because of illness or accident. This coverage may be important if you require a financial obligation, under contract, for tuition, room and board. Back to top

Uncollectible Accrued Storage Charges Coverage
This coverage will insure you against loss of accrued storage charges or earned freight charges when rendered uncollectible because of loss
or damage to customer's property that results from a covered loss. This differs from loss of rents coverage, which pays for loss of future earnings. Back to top

Utility Services (CP1545)
This coverage extends your business income and extra expense insurance to protect against loss when due to the interruption of services rendered to you by a specified utility that provides your business with water, power or communications. Back to top

Valued Business Interruption
This coverage is designed to pay for loss of earnings by eliminating the problem of determining the amount of coverage required to comply with the coinsurance requirements found in standard business interruption forms. It simplifies loss adjustment by paying a pre-agreed amount for each day of business interruption regardless of the actual loss that is sustained. Recovery is stipulated as a set amount per day in case of total loss, or a pro rata of that amount in case of partial shutdown. Back to top

Water Resource Insurance
This coverage will reimburse electric plants for loss when daily water flow at a site is reduced by occurrences such as drought or other natural disasters. It provides coverage by protecting the availability of funds for debt service in the event of inadequate water supply as a result of such occurrences. This is important since it will enhance your plant's ability to raise capital and secure better terms while protecting investors' capital outlay. Back to top

Weather Insurance
This coverage is used to protect against income loss and/or extra expenses arising from specified weather conditions not insurable under your standard insurance program. Back to top