As a Connecticut business owner, you must navigate multiple rights and responsibilities. A potential emergency could arise at any moment, whether it’s an accidental fire or a liability dispute. Purchasing business insurance in Bristol, CT can help your business continue to function properly during these times. Extra expense coverage is one of the most popular add-ons to business insurance policies, and this article helps you understand how it works.
What Is Extra Insurance Coverage?
Extra Expense coverage helps pay for the extra costs involved in operating your business if substantial damage occurs. This type of coverage can help you find a temporary place to stay while your property is repaired, borrow equipment while yours is being replaced, and cover extra payroll costs to compensate workers for handling repairs on time.
This coverage is also beneficial if a natural disaster damages your business and you opt to continue operating instead of shutting things down temporarily. It’s often purchased along with business interruption insurance, and insurance companies offer the coverage in commercial property insurance policies and Business Owners’ Policies as well.
What Does It Cover?
Extra expense coverage helps protect your business from having a financial catastrophe. Your business insurance in Bristol, CT, should cover the necessary repairs in the event your business was damaged by a fire or explosion or even perhaps a criminal severely vandalized your property. Handling these repairs can be expensive, and extra expense coverage is a safety net.
If you decide to move, the policy also handles the costs of renting the new property. Moreover, extra expense coverage supplies the funds to help pay for the damages and get things back to normal as soon as possible. Investing more money now could help reduce the risk of another disaster, saving your business money in the future.
Remember that extra expense coverage can only protect your business if the loss is covered through your commercial property or Business Owner’s Policy. Analyze your policy to understand which events are covered through your policy and which things aren’t. Potential policy exclusions include flood damage, earthquake damage, and fungi/mold development due to poor maintenance.
How Does Extra Expense Coverage Differ from Business Income Coverage?
While extra expense and business income insurance are similar, considering they protect your business in the aftermath of a loss, each covers a unique set of losses. If your property needs repairs, business income insurance covers the lost wages you would normally receive if the business was functioning properly.
Extra expense coverage covers the amount of money you spend outside your budget to help maintain business operations. If your business continues to function due to the support of business income insurance, it’s possible that purchasing extra expense coverage isn’t necessary. However, the extra layer of protection may benefit your business if a disaster occurs when your services are in high demand.
Finding the Right Coverage
Extra expense coverage may already be included in your Business Insurance in Bristol, CT policy. Analyze your policy closely and remember that extra expense coverage is not available to purchase as a stand-alone policy, so it’s recommended that you purchase an insurance policy that includes it.
Consult with C.V. Mason & Company Insurance Today to Get Started
Extra expense coverage is designed to give your business a layer of protection during your most challenging times, where one major catastrophe could jeopardize your entire business. With extra expense coverage, you can ensure that things will keep moving forward. Contact our insurance experts at C.V. Mason Insurance Agency for any questions Regarding extra insurance coverage. Our team can help you renew or purchase your business insurance policy, ensuring that it includes extra insurance coverage.
