Business Interruption Coverage Times Three

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What can complicate coverage on the front end of an income claim can also complicate it on the back end, as standard BI-EE, equipment breakdown, and cyber policies can each have separate, distinct — and conflicting — provisions defining the extent of a recovery period and any extended indemnity period that follows.

Property and equipment breakdown policies are typically written on a loss sustained basis; the “clock starts running” on income losses from the moment physical loss or an equipment accident forces a suspension of operations.

Since it is not uncommon for data breaches to go undetected, cyber policies are often written on a discovery basis. The extent of an income loss may have to be determined by identifying a breach after it happened and estimating the amount of income lost as a result.

Restoration Periods and Other Provisions

Table entries are paraphrased summaries and not authoritative.

Actual claims must be adjusted on the basis of specific wording in applicable policies.

Period of restoration

Extended period of indemnity

Newly acquired locations

Locations in course of construction

Civil authority

Impact of policy expiration

ISO CP 00 30 Business Income (and Extra Expense) Coverage Form

Begins immediately after direct loss for EE coverage and 72 hours later for BI coverage. Ends when property is repaired or replaced or operations resume at a new location.

Built-in limit of 60 days of extended BI coverage can be modified by dec entry up to two years.

Covers BI/EE arising from damage by insured perils at newly acquired locations, subject to a built-in sublimit for each location.

Covers BI/EE arising from damage by insured perils at new structures or alterations of existing structures; subject to the basic BI/EE limit.

Covers BI/EE arising from acts of a civil authority following damage from a covered peril; subject to its own waiting period deductible and effective period.

Coverage continues for an insured loss that began before the expiration date, up until time and/or dollar limits specified in the declarations.

HSB Equipment Breakdown Coverage Form 6671

Begins immediately after an insured accident and extends to the time covered property is or could have been repaired or replaced.

Can be established in the declarations.

If selected on the declarations, BI/EE coverage extends to newly acquired locations up to a number of days specified in the declarations, and subject to a single declared sublimit for newly-acquired locations.

BI/EE coverage automatically extended to expansion or rehabilitation of declared locations.

Typically not addressed explicitly.

Coverage continues for an insured loss that began before the expiration date, up until time and/or dollar limits specified in the declarations.

Summary of provisions in proprietary cyber forms

Often begins after discovery of a data breach and ends with the restoration of the system to normal functioning or a specified number of days, whichever is earlier.

Where included, typically indicated in the declarations.

Typically not addressed explicitly.

Typically not addressed explicitly.

Typically not addressed explicitly.

Coverage typically continues for an insured loss that began before the expiration date, up until time and/or dollar limits specified in the declarations.


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