Dealing with a major incident — like a natural disaster, severe leak, structural defect, or something similar — while running a business is stressful, time-consuming, and potentially financially damaging. Even if your business insurance covers necessary repairs to your property, in some cases that may be insufficient to fiscally protect a business. Damage to a business property may make you unable to continue work for an extended period, which can be devastating for a business that relies on regular cash flow simply to stay afloat.
To best protect your company in the event of this type of incident, it may be worth purchasing extra expense coverage.
What Is Extra Expense Coverage?
Simply put, extra expense coverage offers support for “extra” expenses that may arise after an insurance claim. It can help with the following, and more:
- Monthly monetary obligations, like rent or loan payments
- Expenses around moving to and renting a temporary location
- Costs of equipment you need to urgently replace
In some cases, these costs above and similar expenses will not be covered under a standard insurance policy. Extra expense coverage can be an effective way to bridge that gap. To ensure your business is well-prepared in the event of a disaster or other incident, speak to an experienced insurer about purchasing coverage for extra expenses.