Does Business Interruption Cover Extra Expense?
Sometimes—business-interruption policies may include or add extra-expense coverage for necessary costs that keep you operating or reduce a covered loss, such as temporary-site rent.
NAIC says it can reimburse additional costs during repairs, such as rent at a temporary location, and may help a business continue operating. Policies define which expenses qualify and may require that they be incurred because of covered property damage. Ordinary operating costs or elective upgrades may not meet the definition.
Check whether the quote includes an extra-expense insuring agreement, its limit, waiting period, covered locations, and relationship to business-income coverage. Ask how the policy treats expedited repairs, equipment rental, relocation, and costs above the loss avoided. Keep receipts and a record of the operational need for each expense.
