extra expense coverage

Extra expense coverage is an insurance benefit that helps businesses pay for additional costs incurred if their property is damaged or destroyed and they need to operate elsewhere temporarily. For example, if a fire damages a restaurant's premises, this coverage can cover expenses like leasing a temporary location, increased utility bills, or faster inventory procurement, enabling the business to continue serving customers. It ensures that during recovery, the business can maintain operations and minimize financial losses, beyond what standard property coverage might cover.