USE AND OCCUPANCY INSURANCE 
when, by so doing, the Use and Occupancy insur- 
ance loss can be reduced. This means that the 
expense of moving irito temporary business 
quarters and the many other extraordinary ex- 
penses incidental to emergency operations would 
be met by the Use and Occupancy insurance 
contract. In some instances, an immediate 
replacement of machinery or stock would in- 
volve special costs of production or delivery of 
such machinery or stock. - Special expenses 
such as these are met by this form of insurance. 
Tt should be noted that the insurance company’s 
liability under this item is limited to an amount 
not in excess of that to which the loss under the 
two preceding items may be reduced by the em- 
ployment of emergency steps necessary to a 
speedy resumption of business operations. In 
other words, the insurance company is quite will- 
ing to assist a Use and Occupancy policyholder to 
reestablish business operations as soon as possi- 
ble after a fire, but the insurance company will 
not spend more in so doing than it would have 
spent had the insured business remained sus- 
pended until normal operations could have been 
resumed. 
Suspension 
Due to 
Destruction 
of “Stock” 
It is not always the time required to rebuild, repair 
or replace the damaged premises which causes the 
entire period of business suspension. After the damaged 
premises have been placed in full operating condition, 
the assured’s inability to procure stock will often cause 
an additional period of business suspension. In a 
manufacturing plant, the time required to replace raw 
stock and restore it to its state of manufacture at 
the time of the interruption is a factor to be carefully 
weighed. Likewise, a mercantile establishment might 
require an additional period to replace a part or all of 
its stock before it can resume normal operations. The 
loss of business earnings resulting from this additional 
period of suspension may be covered under a Use and 
Occupancy insurance contract. The extent of this 
additional period depends upon the nature of the busi- 
ness under consideration and deserves special attention 
when selecting an appropriate contract of Use and Occu- 
pancy insurance. The insurance companies have 
drafted standard Use and Occupancy insurance forms 
which are designed to cover the earnings of almost any