The insured policy has the following coverage forms: Business Income (and Extra Expense) Coverage Form CP0030 1012, Causes of Loss- Special Form CP10301012, Utility Services-Time Element CP 1545 1012.

The insured premises suffered direct physical loss caused by Hurricane Maria, which is a covered cause of loss (Windstorm). The insured premises was repaired in fifteen days after the date of direct physical loss to the insured premises. The insured operation was suspended during those fifteen days. Due to the fact that the Hurricane also caused physical damages to the overhead transmission power lines (covered under form Utility Services-Time Element) there was no electricity in the insured premises. The insured resumed its operation on day sixteen after the date of direct physical loss using a power generator. The electricity was restored to the insured premises ninety days after the date of direct physical loss when the overhead transmission lines were repaired.

The parties agrees that the period of restoration or coverage for extra expense will begin immediately after the time of direct physical loss and will end ninety days after the date of direct physical loss, when the electricity was restored to the insured premises. The insured used a power generator until the power was restored on day ninety.

However, with regards to the Business Income period of restoration or coverage, the parties are not in agreement. One part argues that the Business Income calculation should only include the period that begins seventy-two hours after the time of direct physical loss and ends in day fifteen when the insured resumed its operation using a power generator.

The other part argues that since the insured policy includes the Utility Services-Time element form, the Business Income calculation should include the period that begins seventy-two hours after the time of direct physical loss and ends in day ninety when the overhead transmission lines were repaired and the electricity was restored to the insured premises. (We are assuming the extended Business Income does not apply to this loss).

Puerto Rico Subscriber

Under the Utility Services – Time Element Endorsement the waiting period may vary by the specific utility services covered by the endorsement. The endorsement replaces the business income "period of restoration" with its own duration of coverage as follows:

Begins following the waiting period in the Schedule; or Begins at the time of interruption of utility services to the described premises (if no waiting period is shown in the endorsement); and

Ends when operations are fully resumed; or Ends when operations could be fully resumed with reasonable speed after utility service is restored to the described premises

In this situation, the insured used a power generator but it is doubtful that operations were fully resumed. Whenever the policy is vague or ambiguous, the coverage is to be construed to the benefit of the insured. However, if in fact the business was fully resumed by use of the power generator and there is no question of that, then coverage should cease at that time.

But if the insured was only able to fully resume operations after the utility service was restored to the described premises, then the insured would have coverage for the 90 days when the overhead transmission lines were repaired and the electricity was restored to the insured premises.

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