Which additional coverage would help ABC Online Marketing cover the cost of renting another building after a tornado?

Business income coverage is designed to help businesses cover lost income and additional expenses incurred while rebuilding or repairing after a disaster, such as a tornado. This type of insurance is crucial for businesses like ABC Online Marketing, where a significant interruption in operations can lead to substantial financial losses. It not only covers the revenue that the business would have generated if the event hadn’t occurred but also covers necessary expenses, such as the cost of renting another building to continue operations during the recovery period.

In this context, while replacement cost coverage addresses the value of damaged property and additional covered property endorsements increase the range of covered items, they do not directly provide for loss of income or additional operational costs during a business interruption. Fixed cost insurance typically deals with covering specific fixed costs but does not encompass broader income loss or transitional expenses due to a disaster. Thus, business income coverage specifically addresses the situation ABC Online Marketing would face after a tornado.