The Business Interruption Insurance policy protects you, the business owner, against financial loss resulting from a temporary shutdown of operations due to fire or other insured peril covered under your Fire & Allied Perils policy.

If your business is affected by one of these perils and you have made a claim under your property policy, the Business Interruption Policy will reimburse you for loss of profits and expenses you incur if you have to set up operations in another location.

Coverage begins from the time of the loss and continues until the time that the business is back up and running at its pre loss state.

If your property is damaged as a result of a covered
loss and you can operate at a temporary location, you need to purchase extra expense coverage. This will cover your additional costs above and beyond your normal operating expenses for you to continue operations at a temporary location. It would included rent for the alternate location, as well as the cost of relocating.

Extra expense coverage is a compliment to business interruption, and you should have both coverages in order to ensure you are adequately protected.