Time Element Coverage

Updated: 09 June 2023

What Does Time Element Coverage Mean?

Time element coverage is insurance coverage for losses tied tied to a period of time. Most often related to businesses, it covers such elements as business interruption, profit loss, extra expenses, service interruption, soft costs, rental income, and more. Moreover, additional living expense coverage represents a form of time element coverage found in homeowners’ policies.

Insuranceopedia Explains Time Element Coverage

Occasionally, an unfortunate event may slow or halt business operations. For example, an ice cream shop may experience issues with its electrical system after a thunderstorm. Besides stopping other operations, more importantly, the freezers stop working. This could lead to ice cream melting and spoiling, thereby preventing the business from making sales and having to replace its products. This could cost the business thousands of dollars. However, time element coverage, such as business interruption insurance, would protect it from this type of loss.


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