Under business income coverage, when does the period of restoration begin?

The correct choice is that the period of restoration begins 72 hours after the loss under business income coverage. This time frame is crucial because it reflects the waiting period businesses often endure before receiving reimbursement for lost income due to a covered peril, such as fire or other disasters that disrupt operations.

This 72-hour waiting period helps insurance companies manage claims and prevents the immediate payout of income loss for short-duration interruptions, thereby ensuring that only significant disruptions are covered. The restoration period then allows for the assessment of damages, repairs, and ultimately the resumption of normal operations, ensuring that any payouts for lost income accurately reflect the true financial impact of the interruption on the business. This understanding of the activation of the restoration period is essential for producers guiding clients in risk management and financial planning for business continuity.