When does Business Interruption coverage commence and cease?

Business Interruption coverage is designed to protect a business from the loss of income that occurs due to a covered event disrupting operations. The coverage commences at the time of the loss, which means when the business experiences a covered peril that causes a temporary shutdown. It continues until the business is fully operational again, ensuring that the business can recover lost income during the downtime caused by the interruption.

This definition aligns with the nature of Business Interruption insurance, which aims to mitigate financial losses by providing coverage for the income that would have been earned if the business had not been disrupted. The goal is to cover the duration of the interruption, supporting the business through recovery until normal operations resume.

Other options do not accurately represent when Business Interruption coverage starts and ends. For instance, a policy's coverage cannot simply be defined by the duration of the policy term or income restoration achievements; it is specifically tied to the event causing the business to cease operations. Thus, understanding that this type of coverage is directly related to the operational status of the business during a disruption is crucial.