Business Income/Extra Expense Insurance

This is an extremely important add-on to property coverage, and is part of most BOPs. Business income coverage reimburses your business for revenues you lost during downtime caused by damage to or loss of your property. Extra expense insurance reimburses you for expenses incurred to avoid or minimize the suspension of business. Say, for example, your building roof collapses after a heavy thunderstorm.

The business income policy pays for the income you lost while you could not occupy the building, while the extra expense policy covers rent for a temporary office space while your building is being repaired.