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I have an insured that is a retail auto tire dealer with coverage written on a BP 00 03.

The insured leases the premises. There are underground fuel tanks on the premises; the insured does not own the tanks. The property owner owns the tanks and is now required by the state to remove the tanks. The property owner told our insured the business will need to be shut down for two to four days while the tanks are being removed. Is there coverage for our insured, the tenant, for loss of income due to being shut down?

Iowa Subscriber

In order to trigger business income coverage, there must be direct, physical loss or damage to the property caused by a covered cause of loss, such as windstorm or hail. In the situation you describe, removal of fuel tanks is not a covered cause of loss causing the business suspension, so the coverage is not triggered.

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