Insurance Coverage Q&A: Time Element Coverage for Hail Damage to Vehicles
How do we provide time element coverage for a dealership when their inventory is damaged by a covered loss (hail).
Iowa Subscriber
Business income coverage is not included within the auto dealers coverage form and must be purchased separately. ISO has an available endorsement CA 99 05 Business Interruption Coverage which may be attached to the auto dealers coverage form to provide such coverage.
Under that endorsement, there must be a suspension of the dealership's operations during the period of restoration, with such suspension being caused by direct and accidental loss or damage to "scheduled property" as described in the endorsement's schedule.
Otherwise, the dealership's property policy may provide the business income coverage. Whether provided by the referenced endorsement, or by the property policy, there must be an actual suspension of the insured's operations during the period of restoration, with such suspension being a direct result of the covered damage, in your case, hail. Both of these methods require a 72 hour waiting period from the time of the direct physical loss before coverage will take effect.
If you have a specific claim situation that requires additional information, we will be happy to take a look once we receive all of the details.