Summarize the Limits of Insurance, Loss Conditions, and Additional Condition (Coinsurance) of the business income coverage (BIC) forms.
Sometimes when a loss occurs, the limits of insurance, loss conditions, and additional conditions are overlooked and these can be crucial in determining how much will be paid for a business income loss. The sections of ISO forms guide the insured and insurer when determining the amount payable for a business income loss. The loss conditions address the issues of: appraisal, duties in the event of a loss, loss determination, and loss payment. The limits of insurance is the maximum amount that the insurer will pay when a covered loss occurs, but extra expenses, expenses to reduce loss, civil authority, alterations and new buildings, and extended business income will not increase the amount paid.