Summary:  The Business Income and Extra Expense Coverage Form offers the insured two optional coverages, the Maximum Period of Indemnity option and the Monthly Period of Indemnity option.

One big advantage of these options is that they both eliminate the need to maintain coinsurance, as the coinsurance provision is replaced by the chosen indemnity option.

Both indemnity options include the "period of restoration" as a defined term, meaning the period of time that begins 72 hours after the time of direct physical loss or damage. The loss or damage must be caused by or result from any covered cause of loss at the described premises. The period of restoration ends on the earlier of the date when the property at the described premises should be repaired, rebuilt, or replaced with reasonable speed and similar quality, or the date when business is resumed at a new permanent location. Coverage ends when the property should be repaired, rebuilt, or replaced; therefore, the insured could not delay in effecting repairs, thinking that there was no reason to rush.The definition clarifies that the period of restoration does not include any increased period of time caused by the enforcement of any ordinance or law, or any requirement to monitor, test for, treat, or clean up any pollutants. For example, the loss is June 1. It is an older building and the codes have changed over time, although the building hasn't been updated. The repairs to the building will take until August 20. However, because of the need to bring the property up to code, repairs will take an extra 20 days, meaning that the property won't be repaired until September 9. The period of restoration however still ends on August 20, since the extra time to bring the building up to code is not included in the period of restoration. The period of restoration does not end with the expiration date of the policy. For example, if fire destroys a retail shop and the building cannot be repaired from a covered loss by the end of the policy term, the insured will still have coverage for the lost business income until the insured can resume operations.