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CM Pizza is insured under a commercial package policy with the Building and Personal Property Coverage Form and the Business Income (and Extra Expense) Coverage
CM Pizza is insured under a commercial package policy with the Building and Personal Property Coverage Form and the Business Income (and Extra Expense) Coverage Form. It suffered a covered fire loss and was forced to close for 4 months so that repairs could be completed. In order to expedite the re-opening, CM Pizza paid extra fees for express shipping of the new pizza oven and stove. It also had to pay some continuing expenses. Below are the expected revenues, expenses and profits and the actual revenue, expenses, and loss for the 4-month period that it was closed. Expected Actual Revenue $50,000 $0 Expenses $40,000 $25,000 Net Profit (Loss) $10,000 ($25,000) For insurance purposes, what is CM Pizza's business income loss? Available answer options Select only one option A $35,000 B $25,000 C $10,000 D $15,000
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