Utility Services—Time Element CP 15 45, is necessary if coverage is desired for loss of business income and/or extra expenses caused by the interruption of service to the described premises resulting from direct physical loss or damage by a covered cause to the appropriate utility services selected. This welcome revision to CP 15 45 10 12 Utility Services – Time Element CP 15 45 09 17will enable selection of an independent waiting period for business income losses arising from utility services interruption, and this independent waiting period can be different from the policy's waiting period. This will provide a flexible approach for underwriting and managing the utility services exposure. The flexible waiting period is an important feature since the time element business income exposure is very different from the physical damage and attendant restoration of property at the insured premises, which begins at the period of restoration.

Under the Rules revision for this endorsement, the waiting period options will range from no waiting period in increments up to 168 hours (one week).

For example, a policy is effective 1/1; however the insured's peak business period begins 4/1 and they are dependent upon having electrical power to their operations. They cannot afford to be out of electrical power more than two days to sustain operations; therefore, with this endorsement they can select a 24 hour waiting period for business income losses from utility interruption, instead of the 72 hour waiting period for all other business income losses.

Topics Covered:

Introduction

Utility Services – Time Element CP 15 45

Introduction