DEFINITION of 'Business Income Coverage Form'
An insurance policy that covers a company's loss of income due to a slowdown or temporary suspension of its normal operations stemming from damage to its physical property. Coverage typically includes the loss of income less normal operating expenses. Coverage applies during the time required to repair or replace damaged property. The policy may also cover the loss of rental income.
BREAKING DOWN 'Business Income Coverage Form'
The business income coverage form has replaced the former business interruption insurance policy. Business owners should carefully review the limits of insurance, which are outlined in the policy declarations section, and follow the steps outlined under "Duties in the Event of Loss". These include notifying the policy if a law may have been broken and giving the insurance company prompt notice of loss.