X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Summary: Events have spawned increased calls for similar coverages found in two separate forms. On the one hand, the Business Income Form (see, for example, ISO’s Business Income (And Extra Expense) Coverage Form, CP 00 30 10 12, as an additional coverage, promises to pay “for the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access…due to direct physical loss of or damage to property….” On the other hand, the homeowners forms (see ISO’s Homeowners 3 – Special Form HO 00 03 05 11 state that “If a civil authority prohibits you from use of the ‘residence premises’ as a result of direct damage to neighboring premises by a Peril Insured Against, we cover the loss… for no more than two weeks.”

The issues raised by these promises to pay include the meaning of a “civil authority,” “prohibited access,” and “neighboring.” Additionally, questions have been raised as to what constitutes “direct physical loss”—does the term include loss of function?

This premium content is locked for
Insurance Coverage Law Center subscribers only.

Start a free trial to enjoy unlimited access to the single source of objective legal analysis, practical insights, and news for the insurance industry.

  • Access the most current expert analysis and daily developments across jurisdictions
  • Solve complex research issues with expert tools and intelligence
  • Tap into insurance coverage expert guidance

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

ICLC Staff Writer

 

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.