Under a businessowners policy, a loss of earnings is subject to?

Under a businessowners policy, the correct answer regarding the loss of earnings is the time limit for business income, which is typically set at 12 months. This limit reflects the policy's intention to cover the loss of income until the business is restored to its pre-loss condition or up to the policy's stipulated timeframe, which is essential for a business to recover and start generating income again after a loss event.

A key aspect of this provision is the distinction between ordinary payroll and business income coverage. While the businessowners policy includes provisions to cover payroll expenses during a business interruption, the maximum period for which business income can be claimed is generally one year. This helps business owners plan for recovery and ensures they have financial support during the rebuilding phase.

The other options relate to different aspects of coverage. For example, a deductible applies to different types of claims, while the coinsurance requirement ensures that policyholders keep a certain level of insurance relative to their property's value. However, in the context of loss of earnings under a businessowners policy, the focus remains primarily on the defined time limit for business income, underscoring the importance of that timeframe in supporting the business’s operational continuity.