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Business Income and Extra Expense Coverage

Business Income coverage is an extremely important coverage you should consider as part of your overall property insurance protection. This coverage is designed to protect your loss of revenue and your ability to pay your ongoing expenses in the event of a major loss such as a fire resulting in your business being forced to close its doors for an extended period of time. It is important to ask the question, "How much money would I need each month to continue my normal operating expenses and how much net income would I lose from new sales and suspended memberships?" Keep in mind that if you had a serious loss, it would take at least a month to clean up the mess, a month to pull your permits and line up contractors and then several months of rebuilding. It could conceivably take up to six months to get back in business. Calculating the proper amount of coverage can be very difficult. We recommend that you carry enough coverage to replace four to six months of your ongoing expenses and lost profits, but it is up to you to determine your own limit of protection.
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