P&CNationalmedium
A bakery suffers a covered fire that destroys its mixers; the owner rents temporary equipment so the shop can reopen in days rather than weeks, avoiding a longer suspension of operations. Which ISO Commercial Property time-element coverage responds PRIMARILY to those temporary-equipment rental costs?
ACP 00 30 Business Income, because rental costs keep the lost revenue stream flowing during restoration
BCP 00 10 Building and Personal Property Coverage Form, on a replacement-cost direct-damage basis
CP 00 50 Extra Expense, the form that reimburses non-ordinary costs incurred to reduce the suspension
DCP 14 30 Equipment Breakdown Coverage Form, triggered by mechanical or electrical breakdown
Why this is the answer
CP 00 30 Business Income pays the net income that would have been earned plus continuing normal operating expenses during the period of restoration. CP 00 50 Extra Expense pays the extra (non-ordinary) expenses incurred to avoid or minimize the suspension and continue operations, including temporary equipment rentals, expedited shipping, and rented temporary premises. The two coverages are often bought together as 'BIEE' on the combined Business Income (And Extra Expense) form, CP 00 30; CP 00 32 is the Business Income form without Extra Expense (ISO CP 00 50).
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