What Is Extra Expense Coverage for Business Insurance?

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- Renting temporary office space while your building is repaired.
- Renting specialized equipment while waiting for yours to be replaced.
- Paying contractors overtime so repairs can be completed faster.

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What is extra expense coverage?
- Finding and equipping a temporary space. If your business can continue its operations at a temporary location, extra expense coverage pays for renting and outfitting the new space.
- Expediting repairs to return to your old space sooner. If operations can’t be continued, extra expense coverage can pay to minimize the length of the disruption.
- Spending extra money now to reduce the insurer’s costs later. For example, you could buy equipment to use temporarily to help save the insurer money in the long run.
Extra expense coverage vs. business income insurance

NerdWallet Small Business helps you get the right coverage based on partnerships with more than 20 national carriers. Get quality customer service and guidance through our partner, Turbo.
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NerdWallet Small Business helps you get realtime quotes from 30+ insurers, and instant access to your Certificate of Insurance (COI) through our partner, Coverdash.
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How do you get extra expense coverage?
- If you don’t have business insurance and need basic protection: Consider a business owner’s policy. A BOP is a convenient way to get general liability insurance and commercial property insurance, and some insurers, such as biBERK, include business income and extra expense coverage in their BOPs.
- If your business has multiple locations or valuable equipment: A commercial property insurance policy can usually offer higher limits and more tailored coverage than a BOP can. Hiscox Insurance sells commercial property insurance policies that include business income insurance and extra expense coverage.
- If you only need business income insurance: Most businesses should have a BOP or commercial property insurance policy. But if your existing policies lack business income insurance, Nationwide and Huckleberry can include extra expense coverage in business interruption insurance policies.