Time Element Coverage Law and Legal Definition
Time element coverage refers to insurance coverages that are tied to a period of time. Such coverages are generally related to businesses. It covers elements such as business interruption, extended period of indemnity, gross profits, extra expense, soft costs, contingent business interruption, contingent extra expense, civil authority, ingress/egress, service (utility) interruption, rental value and rental income; and leasehold interest. For example, if a building destroyed by fire represents a direct loss, then the lost income resulting from the shutdown of a manufacturing facility housed in the burned building represents an indirect time element loss and would be covered by business interruption insurance, which is a form of time element insurance.