No one can argue that insurance is not cut and dry. If you want to insure your car in New Hampshire, you would buy a NH car insurance policy. If you want to insure your life, you buy life insurance. So if you want to insure your small business' extra expense, you get.... extra expense insurance. But what does this really mean to a NH small business owner?
Why Every Small Business Needs Extra Expense Insurance:
Extra expense coverage is designed to meet the needs of a business that can not afford to close for an extended period of time, so pretty much every small business. This can include:
- Relocation expenses to a temporary location for continued operations
- Rent, utilities and communication at a temporary location
- Necessary alterations to a temporary location
- Office equipment like computers, phones and copiers
- Special marketing expenses to inform your clients and public that you are still open for business
Examples of an Extra Expense Insurance Claim:
The perfect example of a business needing extra expense coverage is a dry cleaner. A dry cleaner that suffers a covered property loss can not afford to lose customers to a competitor even in short-term. Extra expense coverage could cover the opening of a temporary location to reduce the chance that customers get used to taking their dry cleaning elsewhere.
Some businesses, like small manufacturers, can not easily set-up temporary operations elsewhere. Extra-expense insurance could pay for the additional cost to subcontract manufacturing by others while your property is being restored after a covered loss.
What is the Extra Expense of Extra Expense Insurance?
No one likes to spend more money than necessary, but as you can see from the above examples, you may not have the money to re-open your small business without this critical coverage. The cost of this coverage can vary as it may already be included in your NH business owners policy (BOP) or you may need to add it on separately. Speak with an HPM Insurance team member or your insurance professional for the best way to cover your small business and its extra expenses. Otherwise, the last extra expense your business may incur could be an "Out of Business" sign.