Question

Business Interruption - If the date when the property is restored and the business reopens coincides with the date when the business results equal what they would have been had no loss occurred, the client needs what approach to income-replacement insurance?

Answer 1

The client would need a business interruption insurance policy with an indemnity period that covers the income replacement only until the business is restored and reopens, coinciding with the business achieving its anticipated income level had no loss occurred.

Step-by-step explanation:

The question relates to an approach to income-replacement insurance in the context of business interruption. When the property is restored, and the business reopens on the same date as the projected return to normal business results, the client is likely looking for an insurance solution that matches the actual loss of business income during the period of restoration. This approach is termed as an indemnity period or restoration period coverage, where the policy is designed to replace lost income only until the business returns to its pre-loss condition, which in this case coincides with the reopening of the business.