A Study On The Coverage Expansion Of Business Interruption Insurance

Present business interruption insurance does not cover the mostprofit losses of the insured. Therefore, the not analyzes the necessity ofexpanding its coverage. Then, this note enumerates the scope of theinsurable risk of business interruption insurance according to thecausation of business interruption, which are direct physical damages,suffered by the insured, the illness or injury of an interested party to theinsured, civil liability owed by the insured to a third party, and otheraccidents. Due to the expansion of the coverage of business interruptioninsurance, the insured liability will be more diversified and complicated,thus changing the elements of establishing insured liability. Subsequently,the note reckons that the expansion of the coverage of businessinterruption insurance will lead to the expansion of the scope of duty todisclose owed by the insured and will have curtain impact on therecognition of it. Finally, the note discusses the impact expanding thescope of business interruption insurance coverage has on choosinginsured amount and estimating insured value.