Extra Expense Coverage

What You Need to Know

Common extra expenses for restaurants:

• Temporary kitchen rentals — renting commercial kitchen space to continue food prep
• Equipment rentals — temporary cooking equipment, refrigeration, or POS systems
• Relocation costs — moving to and setting up a temporary location
• Increased labor costs — overtime pay or temporary workers to maintain operations
• Marketing expenses to advertise your temporary location or reopening

Extra Expense Coverage is typically included with business income coverage as part of your commercial property policy or business owner's policy, subject to the same policy limits and restoration period.

Why It Matters for Restaurant Owners

When disaster strikes, you face a critical decision: close completely until repairs finish, or keep operating in some capacity to retain customers and revenue. Extra Expense Coverage gives you the financial resources to choose the latter.

Creative solutions this coverage can fund:

• Renting commercial kitchen space elsewhere and transporting finished meals to your location
• Setting up a temporary takeout-only operation, such as a food truck, while rebuilding

Restaurants that close completely for months often lose customers permanently as regulars develop new dining habits elsewhere. The extra expenses required to stay operational are often far less costly than the total revenue loss from a complete shutdown — but most restaurants can't absorb those extra costs out of pocket without this coverage.