Even the most well-prepared businesses can be thrown off course by unexpected disruptions. Whether it’s a fire, storm, or another covered event, the sudden loss of income can be devastating. That’s where Business Income and Extra Expense (BIEE) coverage comes in—helping businesses stay financially stable and get back on their feet faster.
What Exactly is Business Income and Extra Expense Coverage?
Simply put, BIEE coverage is designed to help businesses like yours recover financially when they face interruptions from covered losses. These two coverages work together, but they do serve different purposes. Let’s explore each one.
Business Income Coverage
When your business is unable to operate due to physical damage, business income coverage helps replace lost income during that time. For example, if a fire forces you to close your doors temporarily, this coverage can help cover your rent, payroll, loan payments, and other ongoing expenses.
Extra Expense Coverage
Extra expense coverage helps cover any additional costs your business incurs during the recovery period. Maybe you need to rent a new, temporary space while yours is being repaired. That cost, moving expenses, and even expedited shipping for replacement inventory can all be covered by extra expense coverage.
Why is Business Income Coverage Important?
Think of business income coverage as a financial safety net, making sure a temporary setback doesn’t turn into a very permanent closure. Here’s why it matters:
Maintains Financial Stability: This coverage helps cover essential expenses like payroll, rent, and utilities while your business is recovering.
Supports Business Continuity: By covering the costs of rebuilding or restarting operations, this coverage helps reduce downtime and minimize revenue loss.
Protects Employees: It can help you pay your employees on time, preventing turnover and reducing the costs of rehiring and retraining new staff.
Reduces Risk of Permanent Closure: Many businesses struggle to recover after a prolonged closure, but this coverage bridges that gap to help keep your business afloat.
Setting the Right Coverage Limit
One of the most crucial steps in BIEE coverage is figuring out an appropriate coverage limit. Typically, it’s recommended that the coverage limit should be set at the maximum potential loss, especially if you lose your main revenue-generating building. But there’s more to consider.
Annual Sales and Growth Potential
Look at your business’s past revenue to project future growth. Use this information to determine an accurate estimate for coverage.
Relocation and Temporary Costs
Unfortunately, you may need to relocate while your original building is in repairs. Factor in any and all rental expenses, moving costs, and necessary equipment you’ll need in the new space.
Time to Rebuild
The total time needed to rebuild can vary based on the damage sustained. Think about the complete process from beginning to end: claim processing, permits, compliance with new building codes, and actual construction time.
Other key considerations that could impact your timeline are delays in equipment availability, supply chain issues, and severe weather or other unexpected obstacles.
Hiring and Training Employees
Your business may face turnover of even your key players during downtime. Make sure to consider the additional time, effort, and resources you could need to hire and retrain new staff.
Given all of these factors, businesses should plan for at least 12 months of coverage in the event of a total loss.
Understanding the Period of Restoration
The period of restoration is the timeframe during which Business Income coverage applies. Many business owners underestimate this period, which can lead to underinsured coverage limits and financial strain. The standard policy ends coverage when the property is rebuilt, but losses can continue beyond that point.
This is where the Extended Period of Restoration comes into play. This extension covers the time needed to regain market share, rebuild customer relationships, or restock inventory. This is especially helpful if your business relies on products that have long lead times or are subject to aging processes.
The Importance of a Business Continuity Plan
An effective business continuity plan helps you prepare for the unexpected. It can make a world of difference in reducing downtime and income loss by speeding up the recovery process. A detailed and well-thought-out plan can also show insurance providers that you’re proactive in mitigating risks, improving your chances of getting BIEE coverage at an affordable rate. Don’t wait until disaster strikes to make a plan! At CWG, we believe in going beyond one-size-fits-all solutions. Your business is unique, so your insurance coverage should be too. Ask your insurance agent for a quote from CWG to find the best BIEE coverage and keep your company protected, no matter what comes your way.
Everything You Need to Know About Business Income Insurance was last modified: March 26th, 2025 by Gretchen Thoma
TERMS OF SERVICE AGREEMENT
Welcome to the Continental Western Group® E-Pay Express online bill payment services website, which provides bill payment options and services (such website, options, and services are individually and collectively referred to herein as the “E-Pay Express Services”) available to customers of the Continental Western Group®, an operating unit of Berkley Insurance Company, and affiliated companies (referred to herein as “OU acronym, i.e. “CWG”). CWG® is willing to provide the E-Pay Express Services to you, a customer of CWG, only upon your agreement that your access to and use of the E-Pay Express Services will be subject to the following E-Pay Express Terms of Service Agreement (the “Agreement”). This Agreement describes the terms and conditions under which CWG will make E-Pay Express Services available to CWG’s customers (“you”). The Agreement may be revised without notice and will become effective upon posting on this site and your use of the E-Pay Express Services.I. DEFINITIONSThe following defined terms are used in this Agreement: E-Pay Express is a service you can use to view and pay your CWG bill online securely. CWG has licensed the right to use E-Pay Express from an unaffiliated third party, Fifth Third Bank. and/or its affiliates (“Fifth Third”). Account means the Account with CWG to which you authorize a bill payment to be directed. Payment Instruction means your instruction and authorization to E-Pay Express to make a bill payment to your Account. Payment Account means the bank account that you authorize E-Pay Express to debit when you make your bill payment using account information from your personal or business checking or savings account. Payment Card means the credit or debit card that you instruct E-Pay Express to charge to pay your bill payment. Business Day means Monday through Friday, excluding Federal Reserve holidays. Scheduled Payment Date means the Business Day of your choice upon which E-Pay Express will attempt to complete your bill payment and initiate the appropriate debit to your Payment Account or Payment Card. CWG includes the following affiliated companies of Berkley Insurance Company: Acadia Insurance Company, Continental Western Insurance Company, Firemen’s Insurance Company of Washington, D.C., Tri-State Insurance Company of Minnesota, Union Insurance Company (collectively referred to herein as “Insurers”). All payments processed through E-Pay Express Services are paid to CWG on behalf of itself or one of the Insurers listed above; however, each of the Insurers has sole financial responsibility for its own products and services, including the E-Pay Express Services provided in connection with those products and services. You should refer to your insurance policy for the applicable Insurer.II. DESCRIPTION OF E-PAY EXPRESS SERVICES A. The E-Pay Express Services provide you with access to various online resources, including applications that allow you to view your CWG bill. Unless explicitly stated otherwise, any new features that augment or enhance the current E-Pay Express Services, including the release of new services, shall be subject to this Agreement. Upon your acceptance of this Agreement, CWG grants you a personal, nonexclusive, non-transferable license to access and use the E-Pay Express Services, subject to this Agreement, solely for the purpose of viewing and paying your Account electronically. The foregoing license includes the specific rights to use the available applications and functionalities of the E-Pay Express Services and to print information from the E-Pay Express Services. CWG and Fifth Third do, however, reserve the right to, without notice: (a) modify, suspend or terminate operation of or access to the E-Pay Express Services at any time for any reason; (b) modify or change the E-Pay Express Services or its applicable operating policies at any time; and (c) interrupt the E-Pay Express Services as necessary to perform routine and non-routine maintenance, error corrections, or other changes. CWG also reserves the right to modify this Agreement at any time, in which case you will be provided notice that the Agreement has been changed. Your continued use of the E-Pay Express Services after said notice of the changed Agreement constitutes your agreement with and acceptance of the changed Agreement.
BILL PAYMENT SERVICE
(a) When you initiate a Payment Instruction, you authorize E-Pay Express to charge your Payment Card or debit your Payment Account and remit funds to CWG on your behalf so that the funds arrive to pay your bill as close to the Business Day designated by you as is reasonably possible. While it is anticipated that most transactions will be processed on the day you choose, it is understood that due to circumstances beyond the control of CWG and Fifth Third, some transactions may take a day or so longer to be credited to your Account.(b) If E-Pay Express is unable to obtain funds for a bill payment for any reason associated with your Payment Card or Payment Account (for example, there is not a sufficient balance available on your Payment Card or in your Payment Account to cover the transaction), then we will not be able to complete your bill payment transaction. If there is a problem in processing your Payment Instruction, CWG or Fifth Third may attempt to contact you, using the telephone number you have provided(c) If E-Pay Express makes a bill payment to your Account, but is unable to obtain funds for that payment from your Payment Card or Payment Account, you agree that your bill payment will be reversed.III. LIABILITY FOR FAILURE TO COMPLETE TRANSACTIONSA. E-Pay Express will use commercially reasonable efforts to process your bill payments in accordance with your Payment Instructions. However, CWG and Fifth Third shall incur no liability if a bill payment is not made in a timely manner or if any payments initiated by you through the E-Pay Express Services cannot be completed because of any one or more of the following circumstances:
Sufficient funds are not available through your Payment Account or your Payment Card;
Any failure on the part of CWG or Fifth Third to account correctly for or credit the payment in a timely manner, or any other mishandling of your payment by CWG or Fifth Third;
The E-Pay Express Services are not working properly and you know or have been advised by CWG or Fifth Third about the malfunction before you execute the transaction;
You do not provide CWG or Fifth Third with all required information to complete the bill payment, such as your correct name, telephone number, or your complete and correct Payment Card or Payment Account information; or
Circumstances over which CWG or Fifth Third have no control include, but are not limited to, large-scale technical malfunctions, including, but not limited to, loss of access to the Internet or loss of access to the Federal Reserve System, prolonged outages of telephone lines, electricity or similar infrastructure, acts of God, war, riot, civil disobedience or similar events of insurrection, governmental or court orders, regulatory or legislative changes by any local, state or federal governmental agency, strikes, work stoppages or other similar occurrences or circumstances.
IV. USER NAMES AND PASSWORDSA. During the registration process for the E-Pay Express Services, a User Name, and Password (collectively, “Authentication Materials”) will be established for your use in accessing the E-Pay Express Services. The Authentication Materials are intended for your use only. You agree: (a) not to disclose such Authentication Materials to any third party, (b) to take reasonable care to protect such Authentication Materials from inadvertent disclosure to third parties, and (c) to immediately notify CWG of any loss or unauthorized use of such Authentication Materials. You agree that you will be responsible for all actions taken using your Authentication Materials.V. YOUR REPRESENTATIONS.A. You hereby represent to CWG and agree that:
any and all information that you provide to CWG or Fifth Third to use the E-Pay Express Services will be accurate and complete;
you will not use the E-Pay Express Services to access information about any account unless you have authority to do so by the person or company whose account you are accessing;
you will not provide any information to CWG or Fifth Third or in your use of the E-Pay Express Services, including account information unless you have the authority to communicate such information;
you will not use the E-Pay Express Services for any illegal or improper purposes;
you will not use: (i) any robot, spider, other automatic device to monitor or copy portions of the E-Pay Express home page or the E-Pay Express Services or the content contained therein, or (ii) any device, software, or routine to interfere or attempt to interfere with the proper working of the Payer Express home page or the E-Pay Express Services;
you will not download, reproduce, duplicate, copy or otherwise extract any portion of the E-Pay Express home page or the E-Pay Express Services for the purpose of sale or resale, or make other commercial use thereof, and
CWG or Fifth Third may send you electronic correspondence describing changes to the E-Pay Express Services and this Agreement.
Please Note: Colorado Form WC 50 requires the name of your Insurer to be included on the Form prior to posting at your location(s). You can locate the name of your Insurer here on your policy.
Agency of Oversite: Wyoming Department of Workforce Services Workers’ Compensation Division
Posting Notice: Certificate of Good Standing Required
Addional Posting Information: Any business conducting work in the State of Wyoming or hiring a Wyoming resident as an employee must register with the Division of Workers’ Compensation and Unemployment Insurance.
Agency of Oversite: Missouri Division of Workers Compensation 2
Posting Notice: Workplace Poster Required
Addional Posting Information: The forms are mandatory in both English and Spanish. The forms must be posted proximately to each other. The forms are also available in two sizes—poster and letter size.
Agency of Oversite: Michigan Workers Compensation Agency
Posting Notice: No Poster Required
Addional Posting Information: There is currently no requirement for the posting of a workers compensation insurance notice by the state of Michigan. But there are two posters that an employer may voluntarily post in the workplace.
Agency of Oversite: Iowa Division of Workers Compensation
Posting Notice: No Poster Required
Addional Posting Information: There is no posting notice requirement for employers that have secured workers compensation coverage or qualified as a selfinsurer. Only employers who have failed to secure coverage for the liabilities assumed under the Act must post a notice of the failure to insure.
