For how long does a BOP provide loss of income coverage on an actual loss sustained basis?

A Business Owner's Policy (BOP) typically provides loss of income coverage on an actual loss sustained basis for a duration of 12 months. This means that if a business is temporarily unable to operate due to a covered loss, it can recover its lost income for up to a year from the date of the incident.

The 12-month period is designed to give businesses enough time to recover and return to their normal operations after a disruption. This duration reflects the standard expectations for recovery in many business environments, allowing sufficient time for the rebuilding of clientele and restoration of normal business activities.

In contrast, options such as 6 months, 9 months, or 18 months do not align with the industry standard for loss of income coverage provided by a BOP. The 6-month and 9-month selections may be considered insufficient for many businesses to fully regain their footing post-loss. The 18-month option exceeds the usual coverage boundaries of a BOP, which is typically not designed to extend beyond 12 months for this type of coverage.