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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