Time Element Coverage
What Does Time Element Coverage Mean?
Time element coverage is insurance that covers losses related to a specific period of time. Often associated with businesses, it includes coverage for elements such as business interruption, profit loss, extra expenses, service interruption, soft costs, rental income, and more. Additionally, additional living expense coverage is a type of time element coverage typically found in homeowners’ policies.
Insuranceopedia Explains Time Element Coverage
Occasionally, an unfortunate event may disrupt or halt business operations. For example, an ice cream shop may face issues with its electrical system following a thunderstorm. In addition to halting other operations, the freezers could stop working, causing the ice cream to melt and spoil. This would prevent the business from making sales and require replacing the products, potentially costing the business thousands of dollars. However, time element coverage, such as business interruption insurance, would protect the business from such losses.
