What is the typical use of Extra Expense Coverage in a business context?

Extra Expense Coverage is designed to help businesses manage ongoing operational costs that arise when a property is damaged as a result of a covered loss, such as a fire or natural disaster. When a business is temporarily unable to operate due to such incidents, it incurs additional expenses to continue its operations, like renting temporary space, paying overtime to employees, or leasing equipment. This coverage specifically addresses those extra costs, allowing businesses to maintain their operations and minimize revenue loss during recovery.

The other options do not align with the primary purpose of Extra Expense Coverage. While covering losses from theft is a concern for many businesses, it falls under different insurance policies such as commercial property insurance. Funding marketing campaigns and improving employee benefits are also not covered by this type of insurance, as they deal with different aspects of business operations unrelated to overcoming immediate property loss challenges.