Time element coverages protect for financial losses incurred during the length of time it takes to repair damaged property. Time element coverages are usually written with direct damage insurance.
Business Income Coverage
This protection is designed to cover income your company loses when your business is forced to shut down due to damage to physical property. This type of coverage is called “time element” insurance because the amount of loss depends on how long it takes to repair or replace the damaged property.
Extra Expense Coverage
If your business suffers increased expenses resulting from business interruptions caused by property damage loss, this insurance coverage can pay for items such as salaries, rent, and taxes. This coverage is specifically intended to cover the necessary expenses you incur to avoid or minimize a shutdown of your business after your property has sustained a physical loss.