Question

Loss of Income - Dependent Locations can be purchased by an insured for ALL of the following risks, EXCEPT:

a. Companies that are supplying goods to be insured.
b. Companies that are owned or controlled by the insured.
c. Companies which attract business to the insured.
d. Companies that receive goods of the insured.

Answer 1

Loss of Income - Dependent Locations coverage doesn't typically cover businesses that are owned or controlled by the insured, as this is an internal risk, not one associated with a dependent third party.

Step-by-step explanation:

Loss of Income - Dependent Locations coverage typically protects a business from the risk of income loss due to disruptions at third-party locations upon which the business is dependent. This coverage can address the financial loss from risks associated with suppliers, businesses that attract customers to the insured (like anchor stores in a mall), and other related third-party entities. However, it does not usually cover businesses that are owned or controlled by the insured because this is generally considered an internal matter within the insured's operational structure, not a dependent location or entity.