Extended Business Income Coverage

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Extended business income coverage provides lost income when operations suddenly stop

Extended Business income coverage

Replaces lost income from sudden business loss


When a business’s operations are suddenly interrupted or regular operations cease, extended business coverage provides financial assistance to cover the loss of income during this time. 

In most policies, the period of financial coverage lasts from 30 days up to three months.

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What Is Extended Business Income Coverage and What Does it Cover?

The extended business income coverage insurance policy considers additional expenses due to the temporary closure, reduced operations, resume, or restore business later.

In many cases, this coverage allows business owners to speed up the restoration of their operations, as additional expenses are involved with this process.

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These costs include repairs after fire damage or vandalism, transferring operations to a temporary location, and other incidentals required to operate during this time.

In some cases, this type of business insurance may also cover employees’ wages if there is a loss when operations cease.

Once the restoration finishes, the policy may not cover further losses if they exceed the initial interruption time frame.

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What Types of Businesses Need Extended Business Income Insurance?

Businesses with a storefront benefit from this insurance because any interruption in operations may effectively close the store for days, weeks, and in some cases, months.

Home-based businesses and online companies typically do not require this insurance, as they are not impacted in the same way as brick-and-mortar shops and companies.

Companies that require specific equipment, and premises to create, manufacture goods, or provide a service to the public, will benefit from extended business income insurance coverage.

This financial coverage will allow any company to continue business through a contingency plan until entire operations resume.

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