Does Business Interruption Cover Temporary Relocation?
It may cover qualifying costs to keep operating elsewhere after a covered loss, subject to extra-expense terms and limits.
NAIC describes business interruption as helping pay fixed expenses, including costs incurred at an offsite location, and separately explains extra expense as added costs during repairs. Temporary relocation can include rent, equipment rental, setup, or other reasonable costs that reduce the interruption. Whether each cost is covered depends on the policy’s definitions and whether the relocation follows covered physical damage.
Check whether extra expense is included, how it coordinates with business income, the limit and restoration period, and whether the temporary site needs insurer approval or scheduling. Keep invoices and document why the additional cost was necessary to continue operations or reduce the loss.
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.
