If your accounts receivable records are destroyed, which coverage form may apply?

The accounts receivable coverage form is specifically designed to protect a business's accounts receivable records. If these records are destroyed due to a covered peril, this form provides coverage for the loss incurred, such as money owed to the business and the costs involved in reconstructing these records. This type of coverage is essential for businesses that rely heavily on accounts receivable, as it can mitigate the financial impact of losing critical customer information and help maintain cash flow.

In contrast, property damage coverage generally pertains to physical damage to property rather than to financial records. General liability coverage primarily addresses claims involving bodily injury or property damage to third parties, which does not encompass the specifics of accounts receivable records. Business interruption coverage focuses on the loss of income due to shutdowns or disruptions in operations, which is again distinct from the protection of accounts receivable. Therefore, the accounts receivable coverage form is the most relevant and suitable policy for addressing losses related to these financial records.