USE AND OCCUPANCY INSURANCE
Contingent
Use and
Occupancy
Insurance
Hazards
Against
Which We
Insure
necessarily be used. There are certain other Use and
Occupancy insurance forms which have been designed
to cover earnings of the constant or definite type.
These forms do not cover in a blanket manner and are
quite inelastic. They must, therefore, be used with
caution. In a few instances, these other forms will pro-
vide complete coverage at a lower premium cost than
the Blanket Coinsurance form, but as a rule the pre-
mium cost is approximately the same. It is our opinion
that all other Use and Occupancy insurance forms will
be discarded in favor of the Blanket Coinsurance form
as soon as the superior features of the Blanket form are
generally understood.
A business enterprise may be seriously crippled by
fire damage to or destruction of some property other
than that used and occupied by a policy-holdér. For
example, damage to or destruction of an outside power
plant, or some institution on which the policy holder
may be dependent for parts or processing of parts enter-
ing into the finished product, or a plant to which the
policy-holder’s product is sold, could prove as disastrous
to the policy-holder’s earnings as an interruption caused
py damage to or destruction of the premises occupied
by him. The loss of earnings resulting from a remote
cause of this description may be covered under a form
of insurance contract known as Contingent Use and
Occupancy Insurance. Due consideration should be
given to the possibility of a business interruption by
reason of a remote occurrence when surveying a busi.
ness in preparation for Use and Occupancy insurance.
Of course, a Fire is not the only calamity that causes
an interruption of business earnings. In addition to in-
suring a business against loss of earnings by Fire, the
‘America Fore” group of insurance companies also
insures earnings against interruption by Windstorm,
Explosion, Riot and Civil Commotion, Sprinkler
Leakage, by the explosion of Steam Boilers and pres-
sure vessels, by the bursting of Fly Wheels and Pulleys,
and by the breakdown of Engines, Turbines, and
Electrical Machinery. The presence of any or all of
‘hese hazards will differ according to the conditions
surrounding the operations of various businesses.
All phases of possible interruption and causes should
be given special consideration when determinining
he Use and Occupancy insurance needs of an enter.
yrise.