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In most business owners or BOP policies, you have 12 months of coverage for what you actually sustain as a loss. Meaning the insurer will pay all ongoing costs and lost profits for up to 12 months while youre fully or partially out of business.
Heres a common term in insurance: actual loss sustained (ALS). Our Businessowners coverage automatically includes Business Income and Extra Expense actual loss sustained. As the name suggests, the coverage pays for the actual dollar amount thats affected by a covered loss. Its not just physical loss, either.
Actual loss sustained: This refers to the monetary payment you receive from insurance covering the actual loss of income to your business. Business income: This includes any income that would result from regular business activity.
Actual loss sustained, or ALS, is a form of business interruption insurance and is defined as all actual costs and expenses incurred due to a claim as a result of direct physical loss, damage, or destruction to insured property by a covered peril.
Key Takeaways. Business income coverage (BIC) form is insurance that covers the loss of income due to damage to a companys physical property. ​​​​​​​While property insurance covers physical damage, business income coverage pays for lost revenue during the restoration period.
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Some insurance experts call business income coverage time element coverage because it takes time for a loss to develop. Policies usually have a 72-hour waiting period, meaning they will not pay for income lost in the first 72 hours after direct property damage.
Dependent properties business income or extra expense coverage provides coverage for the insureds income or expense loss resulting from damage by a covered cause to property of another business on which the insured depends to purchase the insureds good and services, to supply materials or services to the insured, or
The Business Income insurance would pay for the landlords loss of business income from its own operations, while the rental value coverage picks up the tab for the lost rental income from the other tenants.

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