It is similar to one of the two property business income forms. At the inception of coverage and annually thereafter, the insured must complete a business interruption report of values. If the insured completes the annual reports on time, there is no coinsurance penalty. A coinsurance penalty does apply if an insured does not submit its report of values on time. The next claim situation demonstrates another of the boiler and machinery business interruption coverage forms.
Coverage is provided with a limit per month.
It also covers extra expense without a limiting feature. However, the machine shop does incur extra expenses to shorten the length of time that it would be out of business. Even though the extra expense does not actually reduce the overall claim, the combined business income and extra expense coverage will pay for all of the business interruption and extra expense claims. Extra expense coverage is provided on a limited basis. The regular business income form does not cover ordinary payroll.