Property · Insurance Term
Extended Period of Indemnity (EPI)
Definition
An extended period of indemnity is optional business income coverage. It keeps paying lost income for a set number of days after repairs are finished and you reopen, while customers or tenants return. It lengthens the short extension that many standard business income forms already include.
In Plain English
Standard business income coverage pays during the period of restoration, the time it should reasonably take to repair. But income rarely bounces back the day you reopen. Hotels must rebuild bookings, and apartments and shopping centers must re-lease space.
Many business income forms include a short built-in extension after reopening. An extended period of indemnity lets you buy a longer one, for example 90 or 180 days or more. It pays only until income returns to the level it would have reached without the loss, or until the period ends, whichever comes first.
For landlords, this ties closely to loss of rents. A tenant who leaves after a fire may not be replaced until months after the building is fixed.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical and simplified: A 100-room hotel reopens six months after a fire, but occupancy runs 50% for two months and 75% in the third. With a 180-day extended period of indemnity, the policy may keep paying the income shortfall until occupancy recovers or the 180 days end.
What to Watch For
- Ask how long the built-in extension is on your business income form.
- Estimate how long it would realistically take to rebuild occupancy or re-lease space after reopening.
- Make sure your business income limit is high enough to fund the extension.
- Revisit the extension when you add properties or major tenants change.
Last updated October 14, 2026 · Primesure editorial team · How We Write