Question

In a commercial property policy, Extra Expense Coverage provides indemnification to the policyholder for additional expenses incurred during which of the following time frames?

A. From 72 hours after the initial damage until the business is up and running again
B. From 72 hours after the initial damage until 72 hours before the business is up and running again
C. From the point of initial damage until the moment the business is up and running again
D. From the point of initial damage until 72 hours before the business is up and running again

Answer 1

Extra Expense Coverage in commercial property policies covers additional expenses from the point of initial damage until the business resumes normal operations, which corresponds to option C.

Step-by-step explanation:

In a commercial property policy, Extra Expense Coverage provides indemnification to the policyholder for additional expenses incurred from the point of initial damage until the business is up and running again. This coverage is designed to help the insured business recover quickly after a loss by covering necessary additional expenses outside of normal operating costs that are incurred to continue business operations as the normal workplace is being repaired or replaced.

The specific answer to the question is that Extra Expense Coverage applies from the point of initial damage until the moment the business is up and running again, making option C the correct choice. It's important for businesses to have this coverage to minimize downtime and financial impact following a loss that interrupts normal operations.