What it does
CP 00 32 covers the actual loss of Business Income (net income plus continuing normal operating expenses) during the period of restoration after direct physical loss at the described premises by a Covered Cause of Loss. It works like CP 00 30, with one major difference. Extra Expense is covered only to the extent it reduces the Business Income loss that would otherwise have been payable. Expenses incurred just to keep operating, beyond what they save, are not covered.
Key provisions
- Same core structure as CP 00 30: Business Income and Rental Value options, a period of restoration with a 72-hour waiting period, civil authority, alterations and new buildings, extended business income, and newly acquired locations.
- Coinsurance and the optional coverages (maximum period of indemnity, monthly limit, agreed value, extended period of indemnity) are available.
Who needs it
Accounts where operations cannot realistically continue elsewhere, so Extra Expense would have little value: a single-location manufacturer with specialized equipment, or a landlord insuring rental income. It typically costs less than CP 00 30.
