Does your Commercial Insurance policy provide Loss of Business Income & Extra Expense coverage?

As a business owner, unexpected disruptions can pose a significant financial threat. Whether it’s a fire, natural disaster, or another unforeseen event, being unable to operate can lead to major revenue loss. That’s why Business Income Coverage (also known as Business Interruption Insurance) and Extra Expense Coverage are critical components of a well-rounded commercial insurance policy. But does your current policy include them?

What is Business Income Coverage?

Business Income Coverage helps replace lost revenue when your business is forced to close temporarily due to a covered event. It typically covers:

• Lost Net Income: The income you would have earned if your business was operating normally.
• Fixed Expenses: Rent, payroll, loan payments, and other ongoing costs.
• Temporary Relocation Costs: If your business needs to operate from a different location while repairs are made.

This coverage helps ensure your business remains financially stable even when operations are halted.

What is Extra Expense Coverage?

Extra Expense Coverage goes beyond lost income by covering additional costs needed to get your business up and running as quickly as possible. This may include:

• Renting temporary office or warehouse space
• Leasing new equipment
• Paying overtime wages to speed up reopening

If minimizing downtime is a priority, this coverage can be a game-changer for your business. Not all commercial insurance policies automatically include Business Income and Extra Expense coverage.

Contact us today for a free policy review and consultation! AnderGray Insurance Services (213) 769-8001 or [email protected]