Question

Choose a business and describe examples of situations where the business ness might need business income insurance and consequential dam- age coverage.

Answer 1

We can take the example of workers working in the manufacturing factory on contractual capacity and suddenly a disaster arise then the person who is delivering the product according to the contract, have to pay wages for the work and at the time of disaster company need to get insured for business income . Business income insurance cover the loss of income that arise during the disaster .

Consequential damage means when one party not able to perform the contractual obligations in a contract and loss arise to other party and this also can be insured in case of above mentioned manufacturing factory for avoiding the uncertainty in the business.