She chose to locate her shop in a classy-looking strip mall that drew a large upscale clientele. If other mall properties suffered direct physical damage from a covered cause of loss, and Sylvia had to suspend operations during the period of restoration, Dependent Properties coverage would pay for the actual loss of business income. She can also consider purchasing Properties coverage, which Extra Expense from Dependent pays the necessary extra expense she would suffer because of a dependent property's loss. This policy covers necessary expenses during the dependent property's restoration, plus the expenses of continuing operations or minimizing their suspension. For example, Sylvia might rent a vacant lot across the street for parking until the mall's parking lot is completely open again, or she might rent a temporary location nearby.
Expenses add up fast in such situations.
Financially, Business Interruption insurance is often more important to a business than Direct Damage Property insurance, since the loss of income can easily exceed the cost of replacing damaged property. The prime time to shoot for HPR-quality risk management is while planning for a new or renovated location loss control is easier to build in sooner than add on later. With modern electronic devices, such as electronically tagged goods, businesses have gone far to protect against shortages due to outsider criminal activity. We have ideas and answers to business problems. The era of using Halon for extinguishing computer fires is over.