Asked by Catherine Collins on Jun 11, 2024
Verified
Business interruption insurance covers the policy-holder when an unforeseen event causes a business to permanently cease operation.
Business Interruption Insurance
An insurance that provides coverage for revenue lost due to a temporary business closure caused by an insured disaster.
Policy-Holder
An individual or entity who owns an insurance policy and is entitled to coverage under that policy.
Cease Operation
The act of halting all business activities permanently or temporarily.
- Identify the coverage scope of business interruption insurance.
Verified Answer
JS
Jakob SteinJun 15, 2024
Final Answer :
False
Explanation :
Business interruption insurance typically covers the loss of income that a business suffers after a disaster while it is either closed for repairs or is in the process of rebuilding. It does not cover events leading to a business permanently ceasing operations.
Learning Objectives
- Identify the coverage scope of business interruption insurance.
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