Question

A business is likely to experience some negative consequences of being unable to use the damaged or lost property. Those negative consequences typically involve reduced revenues or increased expenses, both of which reduce net income (profit).

The commercial property policy provides coverage for net income losses through:

a. basic causes of loss coverage form.

b. business income coverage form.

c. building and personal property coverage form.

d. special causes of loss coverage form. e. broad causes of lo

Answer 1

The commercial property policy provides coverage for net income losses through the business income coverage form.

Step-by-step explanation:

The commercial property policy provides coverage for net income losses through the business income coverage form. This coverage is designed to compensate a business for the income it would have earned if a covered loss had not occurred, such as damage to property. By covering the net income losses, the policy helps mitigate the negative consequences of being unable to use the damaged or lost property, which can result in reduced revenues or increased expenses. The policy provides financial protection and helps businesses maintain their profitability.