What it pays
Net income the business would have earned, plus continuing normal operating expenses, during the period of restoration following a covered loss. Extra expense covers the additional cost of operating from a temporary location or accelerating repairs.
The period of restoration is the whole ballgame
It runs from the date of loss until the property should be repaired with reasonable speed — not until the business recovers its old revenue. For a specialised space with permitting delays or long equipment lead times, the realistic period can be well beyond a default twelve months, and an extended period of indemnity endorsement is worth raising.
What to put on the submission
Give the underwriter the limit and the reasoning behind it.
- Business income limit and whether it is on an actual loss sustained or stated-limit basis
- Waiting period and any extended period of indemnity requested
- Period of restoration assumed, with the reason if it is longer than twelve months
- Extra expense limit and what it is intended to fund
- Any dependent property exposure — a single supplier or anchor tenant
Where it lives on the forms
The property section carries the limits and the coverage request; the ACORD 125 carries the operational context an underwriter uses to sanity-check them — occupancy, premises detail and the nature of operations. Keep the two consistent.
See how the packet gets assembled
Business income sits alongside the property values on the same submission. See the ACORD 125 reference and prefill the address-derived detail.
Questions this raises
Is business income coverage included automatically?
No. It is a separate coverage part with its own limit and conditions, and it has to be requested on the submission.
What is a waiting period?
A time-based deductible, commonly 24 or 72 hours, before business income coverage begins to respond after a covered loss.