Use and Occupancy Insurance
Definition - What does Use and Occupancy Insurance mean?
Use and occupancy insurance is an obsolete term that refers to business insurance that protects against the financial losses of lost profits and other expenses due to some disaster, such as a fire, the stops business operations. It may offer various forms of coverage, such as business income, property loss, property replacement, and other related expenses.
It is now known as business interruption insurance or business income insurance.
Insuranceopedia explains Use and Occupancy Insurance
For instance, a fire destroys essential equipment for a tree removal company. This results in property loss, repair or replacement expenses, loss profits due to service interruption and other complications, and so on. Business interruption insurance would cover these expenses and protect against significant financial losses. However, it may not offer coverage if the fire was the fault of an employee or due to a hazardous condition.