The University's insurance coverage provides for loss of business income in the event a disaster strikes. The coverage is quite extensive and should cover most expenses as a result of the implementation of this disaster recovery plan. The following is a portion of the University's insurance policy which describes the coverage for loss of business income.

BUSINESS INCOME - We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your "operations" or of tenancy during the "period of restoration". The suspension must be caused by direct physical loss of or damage to property at or within 500 feet of insured premises. The loss or damage must be caused by or result from a Covered Cause of Loss.

1. Loss of Business Income means:

   1.  

      1. Net Income (Net Profit or Loss before income taxes) including "Rents" and "Tuition and Fees," that would have been earned or incurred; and

      2. Continuing normal operating expenses, including payroll, incurred;

   2. "Extra Expense"

      1. We will pay any "Extra Expense" to avoid or minimize the suspension of business and to continue "operations."

         1. At insured premises; or

         2. At replacement premises or at temporary locations including:

            1. Relocation expenses; and

            2. Costs to equip and operate the replacement or temporary locations.

      2. We will pay any "Extra Expense" to minimize the suspension of business if you cannot continue "operations."

      3. We will pay any "Extra Expense" to:

         1. Repair or replace any property; or

         2. Research, replace or restore the lost information on damaged valuable papers and records;

         to the extent it reduces the amount of loss that would otherwise have been payable under this Coverage form.

Some exclusions apply. Refer to the actual University insurance policy for detailed descriptions of these exclusions, loss determination, and other coverage.

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