What does Extra Expense Coverage reimburse?

Extra Expense Coverage is designed to reimburse businesses for additional costs incurred to maintain operations after a covered loss occurs, such as damage from a fire, flood, or other perils. This coverage is particularly important for businesses that want to minimize the impact of disruption on their revenue and customer service.

For example, if a fire causes significant damage to a business location, Extra Expense Coverage would help cover the costs of renting temporary space, purchasing new equipment, or any other expenses necessary to keep the business running while repairs are made. This type of coverage is crucial for businesses that are reliant on continuity and cannot afford to lose operational capability for an extended period.

The other options, while they represent significant expenses businesses may face, do not fall under the scope of Extra Expense Coverage. Loss of inventory pertains to assets rather than operational costs. Rent for commercial space might be a part of the expenses covered under Extra Expense, but not the rental costs incurred under normal conditions. Legal fees for business litigation are unrelated to maintaining business operations following a disaster. Therefore, the focus of Extra Expense Coverage is specifically on those additional operational costs beyond normal expenses that arise due to a loss.