By Tom Brenner

Have you ever considered the repercussions of a fire or other damage to your building on your business operations? That’s where business income and extra expenses come into play. While building, contents, inventory, and equipment coverage are essential, it's equally vital to think about the impact on production, payroll, and ongoing expenses that affect your cash flow. Let's explore why business income, including extra expense coverage, should be a priority for business owners in safeguarding against property loss. Here's why this coverage is invaluable:

•Protects Net Profitability: When your building is undergoing repairs or reconstruction, and your business cannot operate, business income coverage steps in to replace your lost net profitability for a specified period. This ensures that your business can continue to cover essential expenses during the restoration period, ranging from twelve to thirty-six months or even longer.

•Supports Ongoing Expenses: Extra expense coverage is crucial for maintaining your business's ongoing expenses despite the inability to operate fully or partially. This includes payroll, taxes, insurance premiums, utilities, and costs associated with relocating equipment and inventory to temporary locations. Essentially, it keeps your business running until normal operations can resume.

•Time Period Deductible: Business income and extra expense coverage often come with a time period deductible, typically twenty-four hours. This means that the coverage is activated only after a physical loss of property occurs, emphasizing its importance in response to unforeseen events.

Ensuring that your property insurance policy includes business income and extra expense coverage is essential for protecting your business's financial stability in the event of a property loss. If you're unsure whether you have this coverage or need assistance in understanding its implications, don't hesitate to reach out to us today. We're here to review your policy and discuss how this risk transfer tool can provide you with peace of mind.