A bakery suffers a covered fire that forces it to close for 45 days while repairs are made. The Business Income coverage form will pay for lost income during which period?

Why this is the answer

Business Income (BI) coverage is triggered when a covered peril causes direct physical damage to the insured's property and the damage forces a suspension or reduction of business operations. The key measure is the 'period of restoration' — the time reasonably needed to repair or replace the damaged property. In the ISO form the period of restoration for Business Income begins 72 hours after the direct physical loss (Extra Expense applies immediately), so the first 72 hours work as a time deductible. It ends when the property should be repaired, rebuilt or replaced with reasonable speed (or when business resumes at a new permanent location), and policy expiration does not cut it short. The form's Extended Business Income coverage then pays for a limited further period while revenue recovers (30 days in older editions, 60 in the 2012 edition), and the Extended Period of Indemnity option lengthens it. See FL Outline §I.C.2.