Extra Expense Insurance primarily covers which of the following?

Extra Expense Insurance is designed to provide coverage for the additional costs that a business incurs when it needs to continue its operations after a disruption, such as a fire or natural disaster. This insurance helps cover operational expenses that exceed the normal costs and are necessary to maintain business continuity during a temporary closure.

For instance, if a business needs to rent a temporary location, pay overtime wages to staff to keep operations running, or implement other measures to mitigate losses during the disruption, Extra Expense Insurance will cover these costs. This type of insurance is distinct from coverage for property damage, lost income, or legal fees, which are addressed by other types of insurance policies. Hence, the focus on covering operational costs precisely aligns with the purpose of Extra Expense Insurance.