Earnings [Business Interruption] Coverage Law and Legal Definition

Earnings (Business Interruption) Coverage protects a business while facing a loss in income. It replaces the operating income of the business during the period when damage to the premises or other property prevents the earnings. This type of insurance covers the actual loss sustained by the insured as a direct result of business interruption necessitated by damage or destruction of real or personal property. The amount of coverage is decided over the amount of insurance or actual loss sustained for each 30-day period of necessary business interruption.