Our client is a nonprofit organization. We recently learned that there is no coverage for business interruption—even for continuing expenses—if there is no profit.

If what we heard is correct, how can we cover this exposure for our client? The coverage for extra expense will not be adequate.

California Subscriber

Although a nonprofit organization does not, by definition, earn a profit, it still has continuing expenses. Payroll and rent, for example, must still be paid.

The business income form covers these expenses to the extent that they were being earned prior to the loss.

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