Question

Chung Gee's Oriental Restaurant does a thriving business for lunch and has an average dinner crowd. It has a commercial property insurance policy. One day an elderly motorist accidentally runs through the plate glass window and into the store. The damage is extensive and the business must close for a month while repairs are completed. Mr. Gee asks you if the policy covers the revenue he lost while his business is closed. For what kind of coverage would you look to go about reimbursing him for the business's lost income?

(A) Preservation of Property coverage

(B) Business Income coverage

(C) Premises/Operations coverage

(D) Builders Risk coverage

Answer 1

Mr. Gee would need Business Income coverage to be reimbursed for the business's lost income while it is closed for repairs.

Step-by-step explanation:

Mr. Gee would need Business Income coverage to be reimbursed for the business's lost income while it is closed for repairs. Business Income coverage, also known as Business Interruption coverage, is designed to compensate business owners for the income they lose due to a covered event, such as property damage. This coverage typically pays for ongoing expenses, such as employee salaries and rent, as well as lost profits.