What does an Extra Expense Policy provide for a business during a restoration period?

An Extra Expense Policy is specifically designed to cover the costs a business incurs to continue its operations during a restoration period following a loss. This policy provides reimbursement for expenses that are necessary to maintain business activities while repairs or replacements of damaged property are underway.

During this critical time, businesses may face additional costs, such as renting temporary equipment, leasing space, or making overtime payments to employees to ensure that they can meet customer needs and maintain revenue streams. The focus of the policy is not on compensating for the loss of income, but rather on addressing the extra costs that arise as a direct result of a catastrophic event.

This policy is particularly valuable because it helps businesses minimize the impact of a disruption by enabling them to operate as effectively as possible until normal conditions are restored. The other options discuss different aspects of business coverage that do not align with the specific function of an Extra Expense Policy.