Does Business Interruption Cover Rent?
It may cover continuing rent for the insured business or costs at a temporary location when a covered loss triggers business-income or extra-expense coverage.
NAIC identifies rent or lease payments and offsite operating costs as possible business-interruption expenses. Coverage depends on the policy’s trigger, the insured’s obligation to keep paying rent, and whether the expense is part of covered business income or extra expense. A new temporary-site rent may be treated differently from rent that would have continued at the damaged premises.
Check the lease obligation, policy’s business-income and extra-expense definitions, waiting period, limits, and restoration period. Confirm whether temporary-location rent is subject to a sublimit or must be reasonable to reduce the loss. Keep invoices, lease amendments, and records showing which costs continued or changed.
Related Coverage
Sources
- Business Interruption and Business Owner Policy. National Association of Insurance Commissioners; Background; Commercial property; Business interruption; Contingent business interruption. Accessed 2026-09-25.
- What Business Income Loss Coverages Are Out There? Learn the Endorsements That Can Help with Lost Business Income. National Association of Insurance Commissioners; Top Considerations; Things You Should Know: business income, extra expense, service interruption, contingent business interruption, civil authority. Accessed 2026-09-25.
- Commercial Property and Business Income Coverage Forms in SES sample policy. Insurance Services Office, Inc.; sample hosted by SES Insurance; CP 00 10 10 12, printed pp.1–16 / PDF pp.7–22: A.1 Covered Property, A.2 Property Not Covered, E.1.b Property of Others, E.1.e Outdoor Property; CP 00 30 10 12, printed pp.1–9 / PDF pp.22–30: Business Income definition, trigger, coinsurance and restoration period. Accessed 2026-09-25.
