Extra Expense Coverage: When Would You Need It?

When a fire, storm or another type of peril rips through your business property, your commercial property insurance should cover major physical damage. However, can you continue operating your business if you are forced to close your building for repairs?  You can, if you added Extra Expense Insurance to your policy.

Extra Expense Insurance covers costs that go beyond your normal operating expenses because of damage to—or loss of—your business property. The good news is Extra Expense Insurance covers you while you repair or replace your property or move to another location.

Some commercial property insurance policies include Extra Expense Insurance, others do not. If you are not sure, make sure to carefully read through your policy; assuming that you have this coverage could prove to be a costly mistake in the future. If you do not have this insurance, consider adding Extra Expense coverage to your policy to mitigate a future disaster.

Extra Expense Insurance Coverage

Extra Expense Insurance reduces the impact that an unexpected event can have on your business. This type of coverage allows you to carry on—as normally as you possibly can—with operating your business.

Extra Expense Insurance helps to:

  • Pay your ongoing expenses. You may still have monthly financial obligations regardless of the type of disaster that occurred. For instance, your mortgage or rent payments, utility bills, and other costs all come due while you wait to repair or replace your property.
  • Pay for additional, unexpected expenses. Extra Expense Insurance covers costs that you would not have incurred if the perilous event had not happened. For example, a fire may force you to move to a temporary location. Your Extra Expense Insurance covers moving costs and other expenses that you would not have incurred had the fire not force you to leave your property.
  • Purchase or lease equipment. If you lost equipment that supports your business or you need additional equipment for your new location, Extra Expense Insurance covers costs incurred for buying or leasing new equipment.

Make Sure that You’re Covered

Make no mistake about it, any type of disaster may force you to temporarily—or permanently—suspend your business operations. Knowing that you are covered with Extra Expense Insurance may go a long way in helping you to stay positive in a negative situation.

Extra Expense Insurance can prove beneficial to businesses of all sizes. We make sure that businesses have the right amount of insurance to cover their physical buildings and assets from fire, storm, theft, accidents and other threats.  If you own a business, we can review your commercial property insurance policy to determine whether your existing coverage takes care of your loss of income and ongoing expenses after an unexpected event interferes with your business operations.

To learn more about Extra Expense or for a review of your insurance policy, contact Haughn & Associates Inc. today.

About Haughn & Associates

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.