Business income expense coverage is essential to any business as it protects the business’ income flow and assists in paying bills if, unfortunately, you are hit with a major loss such as a fire. The purpose is to replace the income that would have been earned by a business if the loss had not occurred.
But do I really need to buy coverage for business income? Consider the affects if you choose not to purchase this important coverage. Business Income Coverage protects the lifeblood of the business-- it’s income which in turn affects the business’ ability to pay bills, employees, order supplies, etc.
In the event of a loss, Extra Expense expands the business income coverage to cover extra items like moving to a temporary location or expediting expenses- getting you back in operation faster. Extra Expense is especially important to those businesses that can't afford to shut down for a period of time. For example, if you needed materials to continue operating, and by delivery vehicle it would take 2 weeks to receive them, extra expense would pick up an expense such as flying the materials in to minimize the time it takes to get the business up and running.