Use and Occupancy Insurance – U&O


DEFINITION of 'Use and Occupancy Insurance – U&O'

A type of insurance that covers against the loss of use of machinery or property due to damage resulting from a named peril or hazard, such as a fire or natural disaster. Use and occupancy insurance provides certain coverage through endorsements to property/casualty insurance policies, if the equipment or property can no longer be used.

Also known as business interruption insurance or business income coverage.

BREAKING DOWN 'Use and Occupancy Insurance – U&O'

This type of insurance policy can also pay the insured on a valued basis, or a specified, fixed amount, for each day that the insured is not able to use or occupy the covered property because of an insured peril. The amount that is payable can be determined by reviewing past financial records of the business.

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  1. What is the difference between a peril and a hazard?

    The two related terms "peril" and "hazard" are often used in reference to the insurance industry. Essentially, a peril is ... Read Full Answer >>
  2. What are the main factors that impact share prices in the insurance sector?

    The main factors that impact share prices in the insurance sector are interest rates, earnings and actuarial risk. In the ... Read Full Answer >>
  3. Why do insurance policies have deductibles?

    Insurance policies have deductibles for behavioral and financial reasons. Moral Hazards Deductibles mitigate the behavioral ... Read Full Answer >>
  4. Which emerging markets are seeing the strongest growth in the insurance sector?

    The emerging market economies seeing the strongest growth for the insurance sector are primarily the main emerging market ... Read Full Answer >>
  5. Why should value investors consider the insurance sector?

    Insurance companies receive steady cash flows for years with irregular payouts. Following these payouts, insurance companies ... Read Full Answer >>
  6. How much do changes in interest rates affect the profitability of the insurance sector?

    Interest rate risk for insurance companies is a significant factor in determining profitability. Although rate changes in ... Read Full Answer >>

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