...CP 00 90 Coverage Part is stated not to apply. This Coverage Part contains a provision entitled “H. Policy Period, Coverage Territory,” which states that the territorial scope encompasses the United States of America, including its territories and possessions, Puerto Rico and Canada. By this territorial condition not being applicable, the Business Income Dependent Properties and Extra Expense Endorsements can apply internationally.
The coverage of this endorsement is activated when there is direct physical loss or damage to “dependent property,” at the premises described in the schedule of the endorsement, caused by or resulting from a covered cause of loss. When this occurs, and subject to the selected limit, the insurer promises to pay the actual loss of business income the named insured sustains due to necessary “suspension” of its “operations” during the “period of restoration.”
The suspension, which can be a slowdown or complete cessation of the named insured’s business, begins 72 hours after the time of the otherwise covered physical loss or damage. 2 Coverage ends on the date when the property at the premises of the dependent property can be repaired, rebuilt or replaced with due diligence and dispatch or, in the words of the endorsement, “with reasonable speed and similar quality.”
Not within the scope of the Business Income Dependent Properties — Limited International Coverage Endorsement is any increased period required due to the enforcement of any ordinance or law that regulates construction, use or repair, or has anything to do with pollutants and their cleanup. Coverage under this endorsement also does not apply when the only loss to dependent property is loss or damage to electronic data.
The Extra Expense From Dependent Properties Limited International Coverage Endorsement CP 15 02 04 02, which is issued in conjunction with the Extra Expense Coverage Form CP 00 50, tracks closely to the limited international coverage dealing with loss of business income. This extra expense coverage would be appropriate where the additional costs to remain operational following physical loss or damage are more important than loss of business income.