Kitchener Extra Expense Insurance

An Introduction to Extra Expense Insurance in Kitchener

Consulting firms in Eastwood, tradespeople in Southdale, and tech start-ups inside the Tannery have a lot more in common than the fact that they operate in Kitchener. While they all reap the benefits of running a business in a city experiencing an apparently unending boom, they also face risks that seemingly increase with an increasing population. Weather events, fires, and vandalism are some of the catastrophic events that all businesses have to be prepared to deal with in the unlucky chance one of them forces a business to close its doors. 

While there are several insurance products specifically tailored to help businesses in the Kitchener area get back on their feet in a disaster scenario, there is one specially designed to ensure that businesses that have to remain open at all costs can continue serving their clients and mitigate their losses. It’s known as Extra Expense insurance.

What is Extra Expense Insurance?

A quick definition of extra expense insurance is that it’s insurance coverage that’s part of a Commercial Property policy that includes Business Interruption Insurance. Extra expense insurance can cover a business’s costs to temporarily relocate or to continue running in its present location, after a disaster event. Those costs have to be over and above the regular operating expenses. They also have to be both necessary and reasonable for the company to continue operations. The table below is a guide to help you differentiate between some of the more typical business insurance policies:

Types of Policies
Commercial General Liability Insurance  Coverage that protects businesses from lawsuits alleging injury to person or property.
Commercial Property Insurance  A policy that covers the costs of repairing a business’s building after a disaster like fire, flood, or vandalism.
Business Interruption Insurance  Insurance to replace lost revenue after a disaster closes a business down. It helps a business continue paying its normal operating expenses.
Extra Expense Insurance Protection against the added costs to continue operations after a catastrophic event. It can cover costs over and above a business’s normal operating expenses. It allows a business to continue operations with minimal interruption to service and revenue.
Kitchener extra expense insurance

Who Uses Extra Expense Insurance?

Extra expense insurance is necessary for many businesses like those that: provide constant service and are typically open seven days a week; are essential services, or are businesses that can’t afford to stop running even after a disaster event. Those businesses can include:

  • Call centres and help desks
  • Retail
  • Food processing
  • Professional offices
  • Hospitality
  • Pharmacies
  • Long-term care facilities
  • Manufacturing

It’s important for any business to reopen as quickly as possible in order to minimize financial losses and avoid losing customers to their competitors. Extra expense insurance coverage helps businesses do just that.

What Does Extra Expense Insurance Cover?

Extra expense insurance typically covers the following costs a business would have to pay to continue operating after a catastrophic event:

Extra Payroll

if a business has to pay its employees overtime, hire temporary workers or outsource work in order to make up for any shortages in production or service due to the unforeseen disaster event.

Moving Costs

to relocate any equipment to a new, temporary location.


to lease a temporary workspace.

Extra Costs

to continue operating in their current locations for businesses that can’t move.


needed to continue operations such as computers, office equipment, phones, generators, key machinery, etc. whether purchased or leased.


phone, internet, natural gas, hydro bills, etc. that are on top of utility fees a business would usually pay.

How Much is Extra Expense Insurance in Kitchener?

The cost of extra expense insurance coverage will depend on what type of business your company is in, the type of coverage, the amount of coverage and where exactly in Kitchener you’re located – among other things. Reach out to us at our KW location so we can customize a coverage that protects your business and keeps you up and running, come what may.

Why Choose ALIGNED

ALIGNED has been helping Kitchener business owners navigate the risk management minefield for years. Contact us today and speak with our business insurance Advocates who care about your business’s success.


Buy Insurance Online Now!

We offer online insurance products for multiple industries, just fill out a simple application form and get a quote today!