Business Interruption Coverage Times Three


Coverage Grants for Business Income and Extra Expenses

Table entries are paraphased summaries and not athoritative.

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

…property, equipment breakdown and cyber insurers are trying to maintain a distinction among losses attributable to property, equipment breakdown and cyber perils — and to have policies cover losses on the basis of what caused the loss.

Business Income coverage grant

Extra Expense coverage grant

Provision for lost rents

Expediting expenses

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

Covers actual loss of “business income” (defined as net income plus normal continuing expenses) due to a full or partial suspension of operations caused by physical damage.

Covers extra expenses to avoid or minimize a suspension of operations. Also, covers expenses to repair and replace property to the extent those expenses reduce the covered income loss.

Can be included in or excluded from BI, or insured exclusively, as indicated in the declarations.

Included in extra expense coverage.

HSB Equipment Breakdown Coverage Form 6671

Covers actual income loss plus necessary expenses to reduce the loss.

Covers reasonable and necessary EE to continue operations during restoration period.

Not explicitly addressed; potentially covered if not excluded.

Covers reasonable extra cost of temporary repairs and to expedite permanent repairs.

Summary of provisions in proprietary cyber forms

Commonly covers loss of income and extra expenses resulting from a disruption or interruption of a computer system.

Commonly covers all reasonable extra expense, without explicit reference to impact on loss.

Typically not addressed.

Typically included in extra expense coverage.