How will sues insurer pay for the business interruption loss


Problem

Sue's pet store is insured for 70,000 under a business income form that contains a 50% coinsurance clause. Following a fire, Sue's business was closed for 3 months due to a covered property loss. Sue's net income and operating expenses for 12 months would have been $250,000 had the loss not occurred. How much will Sue's insurer pay for the business interruption loss?

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Finance Basics: How will sues insurer pay for the business interruption loss
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