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If you can not
use a building (that you normally occupy on your site), or a portion of it, because it was
damaged by an insured event, (like a fire), Loss of Tuition or Loss of Earnings coverage would compensate you for your loss of income according to the
terms of your policy. |
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Usually,
the insurance company will ask for bank statements, receipts, tax records, etc. for the
six months prior to the event. Then they average your monthly income and the average
amount, less any income you still generate, usually is the amount paid to you. |
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The
insurance company will expect you to try to stay in business. |
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Remember: Following any event, you are required to report it to the insurer as soon as
possible and take steps to mitigate damages. |
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Usually
that means finding a temporary location, up-grading it to your requirements, advertising,
calling clients, transportation and stationery expenses. |
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Who
pays for all this? That all depends . . . read the following. |
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Extra Expense Coverage compensates
you for the additional costs associated with staying in business following a covered
event. |
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These
Extra Expenses could be: |
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Rent
of a temporary location. |
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If you
are required, by contract, to continue paying rent at your permanent site or you own your
permanent site. |
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Up-grading
the temporary site to accommodate your operations and/or
comply with State, County or local law. |
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Advertising to let your clients know you are still in business. |
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Loss
of Tuition, Loss of Income, Extra Expense
are forms of Business Interruption Coverage. |
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