Question

Helen owns a manufacturing company. She maintains a commercial property policy that includes Business Income and Extra Expense coverage. One evening, a windstorm blows a tree through the side of her building, leaving a hole in the wall and damaging a production machine. When Helen has to rent another machine to keep her business in operation, how long will she have to wait before she can be indemnified for this indirect loss?

A. 24 hours
B. 72 hours
C. 0 hours—Extra Expense coverage kicks in immediately
D. 12 hours

Answer 1

Helen can be indemnified for the indirect loss of having to rent another machine immediately because her commercial property policy includes Business Income and Extra Expense coverage.

Step-by-step explanation:

Helen can be indemnified for the indirect loss of having to rent another machine immediately because her commercial property policy includes Business Income and Extra Expense coverage. Extra Expense coverage is designed to provide immediate assistance for expenses that are necessary to keep a business running after a covered event such as a windstorm. Since Helen needs to rent another machine to continue her business operations, she can be reimbursed for this expense right away.