1. Forms
  2. CP
  3. CP-00-30

What it does

CP 00 30 is ISO's standard time-element form. It pays the actual loss of Business Income (net income plus continuing normal operating expenses, including payroll) that you sustain because operations are necessarily suspended during the "period of restoration". The suspension must be caused by direct physical loss or damage at the described premises from a Covered Cause of Loss. It also pays necessary Extra Expense to avoid or minimize the suspension and continue operations. The Declarations show whether coverage is Business Income including or excluding "Rental Value".

Key provisions (10 12 edition)

  • Waiting period: the period of restoration for Business Income starts 72 hours after the direct physical loss. Extra Expense starts immediately.
  • Civil Authority: applies when access is prohibited because of damage to other property within one mile. Business Income starts 72 hours after the order and runs for up to four consecutive weeks.
  • Additional Coverages: alterations and new buildings, interruption of computer operations ($2,500 unless higher limit shown), and Extended Business Income. The extended period runs 60 consecutive days after the property is restored, and can be lengthened by optional coverage.
  • Coverage Extension: newly acquired locations, $100,000 per location, when coinsurance is 50% or more.
  • Coinsurance: based on 12 months of projected net income and operating expenses, using the Business Income Report/Work Sheet (CP 15 15).
  • Optional Coverages: Maximum Period of Indemnity (120 days, no coinsurance), Monthly Limit of Indemnity (a fraction per 30 days), Business Income Agreed Value, and Extended Period of Indemnity.

Who needs it

Nearly every operating business with income at risk, and landlords who would lose rents after a fire. Lenders and franchise agreements often require it. Leases often require tenants to carry it so rent keeps getting paid.

Quoting and selling notes

  • Complete the worksheet to set a limit that meets coinsurance, or use Agreed Value, Maximum Period or Monthly Limit to avoid a penalty.
  • Estimate how long rebuilding and re-stocking would actually take. Consider a longer extended period of indemnity for businesses that need time to win back customers.
  • Ask about suppliers and customers (dependent properties, CP 15 08 / CP 15 09), utility reliance (CP 15 45), ordinance-or-law delays (CP 15 31) and payroll treatment (CP 15 10).
  • CP 00 32 is the version without Extra Expense, and CP 00 50 is Extra Expense alone.