Does Business Interruption Cover Rent?
Sometimes—business-interruption coverage may pay rent you must keep paying after a covered shutdown; extra-expense coverage may address rent at a temporary location.
The policy’s trigger and definitions control. 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.
