What is Loss of Use in Retail? Explained

Loss of Use occurs when a property or asset in the retail industry becomes unusable or inaccessible due to damage or loss, disrupting normal business operations. This term, often associated with insurance coverage, may provide compensation for financial losses incurred during the period when a property is under repair or replacement. For retailers, having "loss of use" coverage in insurance policies is crucial to mitigate the financial impact of disruptions caused by events such as fire, natural disasters, or other covered perils that temporarily render the business location unusable.