Tag Archives: Extra Expense Coverage

Business Income and Extra Expense – Understanding the Differences

In addition to covering property damage, most first-party commercial insurance policies offer business interruption coverage. Business interruption coverage typically has two different built in coverages: business income and extra expense. Both are intended to assist businesses in the event a covered peril damages business property and impacts business operations.… Continue Reading

Expenses to Reduce Your Loss are Covered Under Your Business Income Coverage

Business Interruption losses can be complicated, confusing, and for some business the damages are the end of the story. Having the right coverage for your business, your buildings, and the business property can make all the difference for your livelihood if a loss occurs. One additional coverage that is also common to purchase is Extra … Continue Reading

Law Firm Cannot Recover Business Income Losses Resulting from Intentional Pre-Superstorm Sandy Power Outage

A law firm in New York was without power prior to Superstorm Sandy making landfall. The reason for the power outage was because the utility company preemptively shut down power for several days prior to the storm as it anticipated there would be significant pre-storm flooding. The insured premises sustained no flooding or physical damage … Continue Reading

Can a Business Recover for Income Losses After it Restores its Premises and Resumes Operations? Understanding Business Interruption Claims

Most insurers will automatically cut-off business income loss benefits after a business rebuilds or repairs the damaged premises and opens for business. However, this all-too-prevalent claim practice could be inadequate and harmful if the policy has an extended business income endorsement and post resumption conditions are ignored.… Continue Reading

Incurred Expenses May Be Recovered Outside of the Period of Restoration – Understanding Business Interruption Claims, Part 94

Insureds have a contractual obligation to mitigate damages after a loss occurs. Most businesses take drastic measures to resume operations swiftly and will spare no expense in minimizing the down time. In a market where delays are not tolerated and consumers are ever more demanding, the efforts to resume operations are more akin to survival … Continue Reading

Contingent Business Coverage and Extra Expense Coverage May Help Those that Were Not Directly Affected by Hurricane Irene and Lee, Understanding Business Interruption Claims, Part 90

Millions of businesses have been affected directly or indirectly this hurricane season. Hurricane Irene and Tropical Storm Lee caused significant structural and infrastructure damages, expansive floods and lengthy power outages. Many so-called coverages will play important roles in the adjustment and recovery process. Proper training and in depth understanding of all available coverages and remedies … Continue Reading

Total Cessation is Not Required to Trigger Extra Expense Coverage — Understanding Business Interruption Claims, Part 81

The issue of whether a total cessation or a mere slowdown in productivity is required to trigger Business Income coverage is one of those questions that will most likely be defined in the policy. If not defined, courts will decide if the requisite elements are met for business income coverage. In my earlier post, The … Continue Reading

Are Property Manager’s Fees Recoverable? – Understanding Business Interruption Claims – Part 52

Property manager’s fees are normally considered “continuing expenses” in business income claims. The standard Business Income (And Extra Expense) Coverage Form CP 00 30 04 02 says, "We will pay for the actual loss of Business Income you sustain due to the necessary ‘suspension’ of your ‘operations’ during the ‘period of restoration.’" Business Income is … Continue Reading

Michelle Claverol’s Business Interruption E-Book

Every Sunday for the past thirty two weeks, Michelle Claverol has written on topics involving business income, extra expense and interruption claims. These are not the easiest or sexiest of insurance coverage matters, but, for many businesses, winning these issues and having claims paid promptly can determine economic survival.… Continue Reading

Extra Expense and the Period of Restoration – Understanding Business Interruption Claims, Part 22

(Note: This Guest Blog is by Michelle Claverol, an attorney with Merlin Law Group in the Coral Gables, Florida, office. This is the part of a series she is writing on business interruption claims). Most extra expense provisions state that coverage will be extended for necessary expenses that the insured incurs during the “period of restoration.”… Continue Reading