Question

A fire breaks out in Anton's manufacturing plant, causing extensive damage which will take at least three months to repair. In the meantime, Anton has rent and employees who still need to be paid, and many other expenses that can't wait until the business is up and running again. Which coverage form of his commercial property policy can help Anton with his cash flow?

A. Builder's Risk Coverage
B. Manufacturer's Risk Coverage
C. Rent, Salary, and Repair Coverage
D. Business Income Coverage

Answer 1

Business Income Coverage provides coverage for lost income and continuing expenses while the business is unable to operate due to a covered peril. The correct option is d .

Step-by-step explanation:

The coverage form of the commercial property policy that can help Anton with his cash flow is Business Income Coverage.

1. Business Income Coverage provides coverage for lost income and continuing expenses, such as rent and employee salaries, while the business is unable to operate due to a covered peril.
2. Anton can file a claim under this coverage to receive compensation for the income he would have earned if the fire hadn't occurred and cover his ongoing expenses.
3. It is important for Anton to review the policy terms, limits, and waiting periods to ensure he has adequate coverage and understand any applicable deductibles or waiting periods. The correct option is D .