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Business Income & Extra Expense Coverage
When an unexpected event forces your business to temporarily close, the financial impact can be devastating. Business Income & Extra Expense Coverage helps cover lost income and additional operating costs incurred due to a covered event, ensuring your business remains financially stable while recovering. This coverage is crucial for business continuity after disasters such as fires, natural disasters, or other interruptions.
A Business Income & Extra Expense Coverage policy typically includes:
- Compensation for lost revenue during the closure period
- Coverage for necessary extra expenses to resume operations faster
- Rental costs for a temporary location if needed
- Payroll expenses to retain key employees
- Utility and loan payments to maintain financial stability
At
McShea Insurance, we understand the importance of protecting your business's financial future. Our expert team works with you to customize a
Business Income & Extra Expense Coverage policy that ensures your operations can recover quickly after an unexpected disruption.
Who Needs Business Income & Extra Expense Coverage?
Any business that relies on a physical location or ongoing operations to generate revenue should consider Business Income & Extra Expense Coverage. Industries that benefit from this coverage include:
- Restaurants and cafes
- Retail stores
- Manufacturing and warehousing facilities
- Hotels and hospitality businesses
- Medical and professional service offices
- Construction and contracting businesses
FAQs
Does this coverage include pandemics?
Most Business Income & Extra Expense Coverage policies do not include pandemics or government-mandated shutdowns. Many policies explicitly exclude coverage for losses related to viruses or infectious disease outbreaks. It is important to review your policy details and discuss alternative risk management options with your insurance provider.
How long does this policy last?
The length of coverage depends on your policy terms. Typically, Business Income & Extra Expense Coverage lasts until your business can reasonably resume normal operations or until you reach the maximum policy limit. Some policies may also include an extended period of indemnity to cover additional recovery time. It’s essential to review your policy’s duration and limits to ensure you have adequate coverage.
How much does Business Income & Extra Expense Coverage cost?
The cost of this coverage depends on several factors, including:
- Industry and type of business
- Annual revenue and operating expenses
- Number of employees
- Risk exposure and location
- Coverage limits and deductible amounts
Can I customize my Business Income & Extra Expense Coverage policy?
Yes! Businesses have different needs, and policies can be tailored accordingly. Some common add-ons include:
- Extended Business Interruption Coverage: Protects lost income beyond the standard coverage period.
- Dependent Property Coverage: Covers losses due to disruptions at a key supplier or partner facility.
- Civil Authority Coverage: Provides protection when government-ordered closures impact your business.
Get Started Today
Ensure your business is financially protected during unexpected closures with Business Income & Extra Expense Coverage. At McShea Insurance, we work closely with businesses to assess their risks and determine a policy that fits their needs and budget. Contact McShea Insurance today to discuss a policy tailored to your needs.