USE AND OCCUPANCY INSURANCE

when, by so doing, the Use and Occupancy insurance
 loss can be reduced. This means that the
expense of moving irito temporary business
quarters and the many other extraordinary expenses
 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 involve
 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 employment
 of emergency steps necessary to a
speedy resumption of business operations. In
other words, the insurance company is quite willing
 to assist a Use and Occupancy policyholder to
reestablish business operations as soon as possible
 after a fire, but the insurance company will
not spend more in so doing than it would have
spent had the insured business remained suspended
 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 business
 under consideration and deserves special attention
when selecting an appropriate contract of Use and Occupancy
 insurance. The insurance companies have
drafted standard Use and Occupancy insurance forms
which are designed to cover the earnings of almost any