I insure a bill-collection agency on a businessowners policy, form BP 00 02. The agency's automatic dialing system was struck by lightning and damaged. The direct damage loss was covered.

However, the system could not be replaced immediately, so temporary employees were hired to place manual calls. The insurer paid these employees under the BOP's extra expense coverage. The agency owner now is making a business income claim, but I don't think business actually was suspended. It just was slowed down.

Should business income coverage apply?

Missouri Subscriber          

Business income coverage is not triggered. The BOP policy provides business income for losses that are caused by the necessary suspension of operations, but it does not define suspension. In such cases we must refer to the plain meaning of the term. Webster's Revised Unabridged Dictionary defines "suspend" as "to cease from operation or activity." Suspension is defined as the "act of suspending."

 The situation is a change in the method of business but not a suspension. Only extra expense is payable.