What does extra expense insurance cover?

Extra expense insurance is specifically designed to cover additional costs that a business incurs to continue its operations following a disruptive event, such as a fire or natural disaster. This type of insurance allows a business to maintain its operational capabilities by covering expenses that are above and beyond the normal operating costs. For example, if a company's premises are damaged and they need to rent temporary space or equipment to keep the business running, those additional expenses would be reimbursed under extra expense insurance.

This coverage is crucial for businesses that need to minimize downtime and maintain customer service, even in the face of unforeseen incidents. By providing financial support for extra operational costs, this insurance helps businesses recover more quickly and efficiently, aiming to get back to their pre-incident level of operation as soon as possible.