Business Interruption Week – Part 2 – Different Types

Loss of business income insurance pays your lost profits and continuing expenses while your business is shut down after a fire or other insured loss.

Extra expense coverage pays your increased costs of operation with the purpose of getting you back into business quickly. EE pays for renting temporary quarters, advertising to get customers back, costs of wiring, and setting up your temporary quarters, costs of expedited shipping, etc.

Loss of rent insurances pays the income you would have received from renters had the fire or loss not occurred.

Business interruption from dependent properties pays you when a business you depend on is shut down. This could be a supplier, a customer, or a business that you depend on as a draw for customers (think about a restaurant outside of town, next to a museum – museum burns – the restaurant now has no customers).

All coverages above are triggered by damage to your property by a peril insured by your policy. If your building is damaged by a flood and flood is excluded by your policy, your lost income will also be excluded.