Business Income
Contractual obligations have also required the University to purchase certain specialty coverages which have not been outlined in this manual. The most significant contractually required insurance program provides "business income protection" which is discussed below:
Bond holders for the indentured properties do not always accept the limited coverage provided for campus buildings under the University basic property program (BUS-28). "Business Income Protection" is purchased on behalf of the bondholders to supplement the basic property program coverage. The purpose of this coverage is to reimburse the campus policy holder for net operating revenues which are lost as a result of an insured event (fire, windstorm, vandalism, etc.) where the policy holders normal operations are constrained or truly interrupted. This coverage is currently provided solely for the indentured properties on campus which have outstanding bond obligations attached.