What it does
CP 00 30, CP 00 32 and CP 00 50 include an Additional Coverage for Civil Authority. It pays when a civil authority prohibits access to the described premises because of covered damage to other property. The premises must be within one mile of the damaged property, and business income coverage lasts up to four consecutive weeks. CP 15 32 changes those terms for the premises and buildings in its Schedule:
- Part A – Coverage Period: the four-week period is replaced by the number of days shown. If Part A is blank, four weeks continues to apply.
- Part B – Radius: the one-mile requirement is replaced by the number of miles shown.
All other civil authority requirements still apply. Access must be prohibited because of damage to other property by a Covered Cause of Loss, and the order must respond to dangerous physical conditions or allow the authority unimpeded access.
Quoting and selling notes
- Large-area evacuations for hurricanes and wildfires, and police cordons in downtowns, can keep businesses closed longer and farther from the damage than the standard terms allow.
- Civil authority still requires physical damage from a covered peril. Orders issued for other reasons, such as public health orders, are not covered by extending these terms.
- Many carriers include broader civil authority terms in proprietary business income enhancement endorsements. Compare them.
