Business Insurance Period Of Restoration

A business insurance policy can provide protection against loss of business income due to an insured peril such as fire. Business interruption insurance claims are designed to keep you afloat while your business is repaired. Business interruption claims will provide some income benefits only during the period of restoration.

It is essential to understand how your policy defines the period of restoration. Generally a period of restoration is the time your business becomes inoperable to the point in time the business is repaired. If a business structure becomes damaged and needs to be rebuilt, the business owner may see it as an ideal opportunity to perform other renovations or an expansion. The period of restoration generally will not cover additional time needed for expansion or other improvements.

Some policies will provide additional coverage after the period of restoration ends of up to thirty days. This extended coverage can begin as soon as repairs are completed, but the timing can vary with each business insurer.

Sources

1. Quantifying Loss: Four Key Elements for Resolving Business Income Loss Claims, Russ Matheson. Retrieved June 4, 2008, from http://www.claimsmag.com/cms/Claims/Monthly+Issues/Issues/2008/06/Features/FEATURE+cover+story.htm?p=2