What is Business Income and Extra Expense Coverage?
Business income and extra expense coverage is a type of property insurance that includes four types of coverage above and beyond your standard property insurance policy. This coverage can help when there is an accident on your property that hinders business operation. The four coverages are:
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Business Income
Business income replaces the income that normally would have been earned and reimburses you for typical business expenses that you might incur, if no property damage and no suspension of business operations had occurred.
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Extra Expense Coverage
Extra expense coverage takes care of the extra costs (above normal operating costs) necessary to conduct your business operations during the time repairs are being made to the damaged property.
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Extended Business Income
Extended Business Income covers the reduction of income you may experience after repairs are completed, but before the business operation returns to the way it was before the incident.
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Dependent Business Income
Dependent Business Income provides financial protection in case of a loss of your trade partner.
Protection When Crisis Calls
Every business is different, so a power outage in a data security business can be as devastating as a fire in a lumber yard. These crises often can’t be predicted, but Selective can help you find business insurance solutions that protect your unique business.
Any sort of emergency that happens suddenly, disrupts the routine of the business, hurts its competitive position, and demands immediate attention can be called a crisis.
Contact your local independent insurance agent to see how we can provide your business with a Business Income and Extra Expense Policy tailored to your needs. While you’re talking to your agent, ask them about Selective’s value-added services like PaySync® and Risk Management.
For more information on the types of business insurance solutions Selective Insurance offers, visit Insurance Coverages for Your Business.