For which type of coverage should a newspaper publishing company purchase to protect against loss of income after a serious loss to its printing facility?

Prepare for the Mississippi Insurance Test with focused questions, hints, and detailed explanations. Enhance your knowledge and boost your confidence to succeed in your assessment!

The most appropriate coverage for a newspaper publishing company to protect against loss of income after a serious loss to its printing facility is business interruption coverage. This type of insurance is specifically designed to cover the loss of income that a business sustains when its operations are interrupted due to a covered event, such as fire or natural disaster.

Business interruption coverage ensures that the company can continue to pay its ongoing expenses, such as salaries and rent, during the period when the business is unable to operate. It also typically covers lost profits that the business would have earned if the loss had not occurred.

The other types of coverage mentioned do not specifically address the loss of income aspect. Extra expense coverage focuses on reimbursing additional costs incurred by a business in order to keep operating after a loss, rather than covering the loss of income itself. General liability coverage protects against claims for bodily injury or property damage caused by the business, while certain property coverage relates to the physical assets and property owned by the company, but does not inherently address income loss.

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