Tasty Food Products has a commercial property policy that includes the business income and extra expense coverage form. An explosion damages a portion of the Tasty Food plant. While repairs are under way, Tasty manages to continue operations using the undamaged portion of the building, but its output is greatly reduced. Will Tasty be able to collect for the reduction in business income caused by this slowdown in its operations
a. Yes. Coverage applies to either a slowdown or a cessation of the insured's operations.
b. No. Coverage applies only to a complete cessation of the insured's operations.
c. No. The loss was caused by an explosion, which is an excluded cause of loss.
d. No. Business income coverage applies only if the insured's facility is completely destroyed by a covered cause of loss.