YOU ASK:

What is the definition of Business Income and Extra Expense Insurance (Also Known as Business Interruption Insurance)?

WE ANSWER:

Business Income and Extra Expense Insurance is paid to a business owner. This kind of commercial insurance protects the business owner in case something happens to the business. The peril must be covered under the insurance contract (i.e. a fire, a theft, etc.).

The insurance pays for financial losses the business owner may incur because he is unable to do business - there is physical damage to the business establishment, or civil authorities may ban access to an area so that customers are unable to go to the business establishment. The purpose of this insurance is to provide the business owner with the necessary funds to continue operating after experiencing a covered loss.

This kind of insurance usually has a waiting period, after which the insurance starts to pay for the benefits. These benefits may last for two weeks or more.

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