Does Business Interruption Cover Temporary Relocation?
Sometimes—business-interruption or extra-expense coverage may pay qualifying costs to operate at a temporary site after covered damage, such as rent or equipment rental.
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.
