Extra expense insurance,
Definition of Extra expense insurance:
Extra expense insurance is a form of commercial insurance that pays for a policyholder’s additional costs while recovering from a major disruption. Extra expense insurance coverage applies to the period of time between when a business is forced to close temporarily and when it has been restored to normal operation.
Extra expense insurance provides cash to help you stay in business while your property is being repaired or replaced. Without this financial assistance, some businesses that suffer a major loss could be faced with closing permanently.
Policy that pays (up to a specified limit) expenses incurred in restoring a firm to its normal operations (after a disaster) but not covered under the ordinary business-interruption insurance policy.
How to use Extra expense insurance in a sentence?
- Businesses that provide continuous services that customers depend on seven days a week, such as data centers, and those that perform essential duties, like hospitals, are good candidates for extra expense insurance.
- Extra expense insurance covers reasonable and necessary costs that a business might incur as a result of a major disruption to its operations.
Meaning of Extra expense insurance & Extra expense insurance Definition