What is the coverage period for Extra Expense under the BO policy?

The coverage period for Extra Expense under a Business Owners (BO) policy is indeed up to 12 months following a direct loss. This means that if a covered event disrupts the normal operations of a business, the policy will typically provide coverage for the extra expenses incurred as a result of that disruption for a maximum duration of 12 months.

The essence of this coverage is to help businesses mitigate the financial impact of loss by covering additional expenses that are necessary to maintain their operations while repairs or restoration are being undertaken. This could include costs like renting temporary facilities, additional staffing, or overtime payments to employees.

The specified duration allows businesses to have a reasonable time frame in which they can recover from losses, ensuring they have adequate support while they work on restoring their operations. Hence, the 12-month period for Extra Expense coverage is a fundamental aspect of the BO policy, aligning with the need for businesses to navigate the challenges that arise in the aftermath of a loss.