extra expense insurance

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Last updated

June 26, 2026

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Extra expense insurance is a type of indirect loss insurance that reimburses a business for additional costs incurred due to a disaster. This coverage pays for expenses beyond normal operating costs, such as renting substitute facilities after direct damage has occurred.1

This is distinct from business interruption insurance, which covers lost profits and continuing fixed charges during a suspension of business activity due to damage from specified perils. Excess insurance, on the other hand, refers to coverage that only applies once a loss exceeds a stated amount or is over and above what's required by a coinsurance clause.23

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insurance
Indirect losses
…of the insured firm, (2) extra expense insurance, which pays the additional cost occasioned by having extra expenses to pay, such as rent on substitute facilities after a disaster, and (3) rent and rental value insurance, covering losses in rents that the owner of an apartment house may incur if…
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…of the insured firm, (2) extra expense insurance, which pays the additional cost occasioned by having extra expenses to pay, such as rent on substitute facilities after a disaster, and (3) rent and rental value insurance, covering losses in rents that the owner of an apartment house may incur if…
Read More