Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Our insured suffered loss to its leased location in a tornado which occurred on March 3, 2020. The insured’s business operations involved storing and scanning medical documents under a 5 year contract that was active at the time of the tornado. Under this contract, the insured was obligated to scan the medical records, and store the digitized records for their clients. The contract provided for a per page fee for such services that were to be paid when the scanning and digitization services were performed. The income that would have been realized from the scanning of medical records was approximately $4 million. The insured resumed its operations at a new leased space 18 days following the tornado. The insurer denied any compensation for the claimed income loss related to the records because the income that would have been realized from the scanning was future income that would have been realized outside the 18 day “period of restoration”. The insured contends that the records were literally unrecoverable at the time of the tornado, and therefore the lost income was caused by a “suspension” of “operations” that occurred within the “period of restoration”. Is the income loss from the missing records owed under the business income policy (ISO Business Income (and Extra Expense) Coverage Form?

This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.

Request a Free Trial today to enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Trusted, quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

FC&S Editors


Get Answers Directly From the FC&S Experts

Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.

Question of the Week

Insurance Coverage Q&A: Where is there Coverage for Electric Bicycles? ›

Electric bicycles - is there coverage for them under the homeowners policies?

Question of the Week Archive ›

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.