A prospect owns a catering service and also operates a food truck that visits construction sites five days a week.

Q: “If the food truck is damaged and out of commission for a lengthy period of time, is the prospect’s business income loss covered or can it be?”

A: “It depends. If the food truck is damaged by a covered peril at the described premises of the catering service, the resulting loss of income can be covered by ISO’s CP 00 30 and CP 00 32 business income coverage forms. But if the food truck is damaged away from the premises, ISO has never provided a means to cover this exposure—until now.

(Before proceeding, check out these related VU articles: Business Income for Auto Damage; Business Income for Specialty Vehicles; and Insuring Food Trucks…Common Exposures in Uncommon Circumstances.)

After consulting with its insurer panels and doing extensive research, ISO has introduced the following optional endorsements under several lines of insurance:

CP 15 06 02 14: Off-Premises Interruption Of Business – Vehicles And Mobile Equipment

Business income and extra expense coverage is traditionally and most commonly offered under the ISO CP 00 30 form. Coverage under that form is triggered by direct physical loss to property at or within 100 feet of the described premises (note that the trigger is not limited to damage to “covered property”). The catch is that the property must be on or next to the premises—which doesn’t help businesses where operations depend largely on a vehicle that is subject to damage or destruction primarily away from the premises.

The six-page CP 15 06 is designed attach to ISO’s CP 00 30, CP 00 32 or CP 00 50 business income/extra expense forms. But it can only be used if the CP 10 30 – Special Causes of Loss form applies to the BI/EE coverage form. The perils that apply to business income coverage at the described premises also apply to off-premises coverage under this endorsement, which also addresses over-the-road hazards based on the exclusions of ISO’s Commercial Auto Program.

BP 10 80 02 14: Off-Premises Interruption Of Business – Vehicles And Mobile Equipment

Coverage is provided in ISO’s Business Owners Program comparable to that in the Commercial Property Program by use of the five-page BP 10 80 endorsement.

CA 99 05 02 14: Business Interruption Coverage

ISO’s Commercial Auto Program includes some optional coverages that address certain specified extra expenses, such as towing and labor coverage and rental reimbursement coverage, but no true business interruption coverage. For insureds that have no premises business interruption exposure, the CA 99 05 can address the mobile BI/EE exposure.

The CA 99 05 can accompany the CA 00 01, CA 00 20 and CA 00 25 commercial auto policy forms, with coverage generally patterned on the new CP and BP endorsements. The endorsement applies to scheduled property, including machinery or equipment that is permanently installed on such property, but not including buildings, locations or premises.

Like other BI/EE forms and endorsements, a modifiable 72-hour waiting period applies, as well as extra expenses (other than costs to repair or replace property) and extended business income for a modifiable 60-day period. The form also offers options for comprehensive, specified causes of loss and collision, which apply to the business income coverage regardless of what physical damage coverage (if any) is provided by the auto policy itself with respect to scheduled property.”

Bill Wilson is director of the Big “I” Virtual University. 

This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, email logon@iiaba.net to request login information.