What is Time Element?
Time Element is insurance that Covers other losses stemming from a direct loss by a covered peril to business property. business interruption, extra expense, and loss of rents and rental value are the most common time element coverages. business interruption coverage replaces lost business income after a covered loss. Certain key employees can be named, allowing the employer to continue to pay their salaries until the business restarts operations after a loss. extra expense coverage mainly applies to service or product related companies where the business must continue to ensure the survival of the company. extra expense can pay for office space, equipment rental, advertising, or most costs considered reasonable for keeping the company operating after a covered loss. loss of rents and rental value cover loss of rental income to the property owner caused by damage or destruction of a building rendering it unfit for occupancy.