Business Income and the Waiting Period for Coverage
Business Income forms have historically contained a twelve hour “waiting period” for Off Premises Utility Interruption. In the last decade of coverage, the Business Income Form has contained a 72 hour waiting period.
Did You Know: The waiting period ONLY applies to Business Income. There is NO waiting period for Extra Expense
Did You Know: That there is a difference between a “waiting period” and a “time deductible”. A “deductible” clearly intends to eliminate any Business Income Coverage for the first 72 hours. If the 72 hours is expressed as a waiting period then coverage could be available from the first hour of loss if the loss exceeds 72 hours. Many insurance companies are changing to use the word to deductible to avoid the confusion.
Did You Know: You can eliminate the waiting period entirely or change the waiting period to twenty four (24) hours. The additional costs for reduction or elimination of the waiting period/deductible is typically nominal.
Laurie Infantino, AFIS, CISC, CIC, CRIS, ACSR, CISR
Insurance Skills Center
www.InsuranceSkillsCenter.com