Florida Insurance Licensing Practice Exam

Which coverage form would a home oxygen service use to continue supplying customers even if their facility is destroyed?

1. Building and Personal Property Coverage form

2. Extra Expense Coverage form

3. Leasehold Interest Coverage form

4. Legal Liability Coverage form

The correct answer is: Extra Expense Coverage form

When a business's facility is destroyed, usually everything inside is damaged as well. In this situation, the business needs to find a way to continue to operate and serve their customers. Extra Expense Coverage form would be the ideal choice for a home oxygen service to use in this scenario. This coverage form helps a business to cover any additional expenses, such as renting a temporary facility or purchasing new equipment, to continue operating while their main facility is being repaired or rebuilt. Building and Personal Property Coverage form only covers damage to the building and property, not additional expenses. Leasehold Interest Coverage form is specific to renters and may not apply to a home oxygen service that likely owns their facility. Legal Liability Coverage form would not assist with the business's ability to continue serving customers. Therefore, out of the given options, Extra Expense Coverage form is the most suitable choice for a home oxygen service to continue supplying customers in