Regarding business interruption coverage, if an insured has initially lost income during the first three months of the loss, but then is able to match previous sales for the remaining time of restoration, can the specific first three months stand alone as a loss, or must they be added in to the full time of restoration which would have the effect of diminishing the loss due to the averaging of the total amount of time of restoration?

The policy language uses the word DURING the period of restoration.

Connecticut Subscriber

Here is where the definitions become most important. In looking at the definition of "period of restoration", that period begins seventy-two hours after the time of the loss and continues on until either 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 the insured resumes operations at a new permanent location.

Therefore, the full period of restoration would need to be included when calculating the business income loss. That being said, the insured still had a loss for the first three months so the insurer should pay for the months the insured had a business income loss following the first seventy-two hours, and the loss amount should not be offset by any increased income the insured had in other months.

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