Could you please provide various examples of the application of the Loss Determination clause for Business Income under (a)(2) of CP 0030 10 12? If the examples are applicable to the hotel industry, that would be even better.

Puerto Rico Subscriber

Section a. (2) of the loss determination section pays for what would have been regular income had the loss not happened. The confusing section is that it does not include income that would have been earned as an increase in business due to damage to other businesses. For example, a tornado comes through an area and damages hotels on the beach severely, leaving The Oceanfront Hotel damaged but still usable. The Oceanfront Hotel would have received the guests from the other hotels due to the storm, which would have increased its revenue. However, the Oceanfront Hotel can only collect business income loss of its normal revenue, not the increased revenue it would have received from the other hotels.