What term refers to the time for recovery of proved business income loss after physical property is restored?

The term that describes the time for recovery of proved business income loss after physical property is restored is known as the Extended Period of Indemnity. This concept is essential in business interruption insurance, where it is recognized that even after the physical restoration of the insured property, a business may still experience a decline in income as it works to return to normal operations.

The Extended Period of Indemnity extends the coverage period beyond the time it takes to restore the property, acknowledging the additional time needed for the business to regain its previous level of profitability. This additional coverage helps businesses manage the ongoing financial impact while they stabilize and resume their operations.

Understanding this term helps businesses and adjusters to navigate the complexities of claims related to interruption and revenue loss, ensuring adequate financial support during a challenging recovery phase.