What does Extra Expense coverage help with?

Extra Expense coverage is designed to help businesses manage their additional operational costs that arise while their property is being repaired after a covered loss. This includes expenses that are incurred to maintain business operations during the repair period, such as renting temporary facilities, paying for additional staff, or other costs that help keep the business running while repairs are being completed.

This coverage is particularly important because, in the aftermath of a loss, a business may still have ongoing expenses but might not be generating revenue as usual. Extra Expense coverage ensures that the business can continue to operate in some capacity, thereby minimizing losses and allowing for a smoother transition back to full operations once repairs are completed.

Rebuilding costs, new installations, and legal fees are not encompassed within Extra Expense coverage. While rebuilding costs may be covered under a property insurance policy, they do not pertain to the additional operational expenses incurred specifically as a result of a business interruption. Similarly, the costs associated with new installations or legal fees fall outside the purview of Extra Expense coverage, which focuses on sustaining the business during its recovery period.