What type of coverage applies only to business income and not to extra expense coverage?

Business income coverage is specifically designed to compensate for the loss of income that a business experiences due to a covered peril that disrupts its normal operations. This type of coverage focuses on the income generated from the business operations during the period of interruption and is crucial for ensuring that the business can sustain itself while it recovers.

In contrast, extra expense coverage is intended to cover the additional costs that a business incurs to continue operations or minimize income loss during a period of disruption. While both types of coverage are important for a business facing interruptions, they serve different purposes. Therefore, business income coverage applies exclusively to the lost income aspect, distinguishing it from extra expense coverage, which addresses the costs incurred to maintain or resume operations.

This focus on lost income makes business income coverage vital for businesses looking to recover financially after experiencing a disruption.