Time element’ coverages are those where an event occurs and injury – in the form of lost business income or extra expense – is suffered over a period of time, often referred to as the ‘Period of Restoration’. There are only approximately 1,100 time element cases – likely less than the number of cases addressing the pollution exclusion in liability insurance policies. Of those, only 35 address Contingent Business Income (CBI) or Contingent Extra Expense (CEE). CBI is designed to protect a policyholder for loss caused by damage to property of customers or suppliers; while CEE covers a policyholder for extra expenses incurred as a result of the same damage. Despite this paucity of case law, certain principles of contingent time element.
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