In relation to business income coverage, which statement is incorrect?

In the context of business income coverage, the statement that the coverage pays from the date of loss to policy expiration is incorrect. Business income coverage is designed to reimburse an insured for lost income due to a covered loss that disrupts operations. However, this coverage typically only pays for a specific period after the loss occurs, not extending to the policy expiration date.

The coverage period is often limited to a specified timeframe, such as 12 months or until the business is able to resume normal operations, as defined in the policy. Therefore, while the insurance provides compensation for the time it takes to recover, it does not continue indefinitely until the policy itself expires.

In contrast, the other statements reflect accurate aspects of business income coverage. For example, reimbursement for payroll expenses after a loss is a crucial component of maintaining employee salaries during the recovery period. The expectation that the insured will make efforts to resume operations quickly is a standard condition within this coverage to reduce losses. Additionally, the policy will not cover losses that exceed the termination of coverage, meaning that payments would not continue beyond the established timeframe, reinforcing the limitation of coverage duration.