Business Income & Extra Expense

Business Income and Extra Expense is a coverage offered under commercial insurance property coverage.  Under a Business Owners Package there is usually a limited amount automatically covered.  However, this coverage must be selected under the Commercial Property policy.  This coverage is designed to recover lost income and any extra expenses involved getting a business back to the financial position prior to a covered loss. 


One example would be for a flower shop.  Suppose a restaurant next door to a flower shop caught on fire.  Most likely, the flower shop’s power will go off, and be off several hours.  The flower shop may suffer not only smoke damage to the shop, but the loss of refrigeration will cause loss of inventory, which in turn, causes loss of sales.  This coverage within the policy will allow the flower shop to arrange for generators operating temporary refrigeration, operations and whatever else the shop needs to continue business operations.  This is the extra expense side of the policy.  Smoke clean-up will be through the property side of the policy and loss of sales income will be through the business income.  Please talk with your agent or one of ours to find out if you need this coverage for your business.


 Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.