September 16, 2013

We have a situation we are not sure about. The insured owns a small business (café). She was injured in an accident and cannot work for a bit. She hires new employees and/or gives more hours to current employees to cover the hours she normally works. She is claiming the additional hours paid to employees as loss of income under the Income Continuation portion of the PIP endorsement. Is this considered Income Continuation? Arguably, the additional salaries paid are an expense that ultimately cuts into the insured's bottom line (income).

The Income Continuation definition is as follows: An "insured's" loss of income from work, less other income earned, during a period of disability due to "bodily injury".