Extra Expense Coverage

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 will ensure quick and proper resolution of the slew of claims related to these storms. The flip side will cause delays and headaches.


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

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 Shortcomings of a Total Cessation Requirements—Understanding Business Interruption Claims, Part 55, I highlighted how many courts follow the “total cessation” approach, but that many others will allow recovery under a “slow down” theory and discussed the limitations and implications of following a “total cessation approach.”


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

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 defined as:

  1. Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and
  2. Continuing normal operating expenses incurred, including payroll.


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

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 Michelle Claverol’s Business Interruption E-Book

(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). 

The Standard ISO Extra Expense provision reads as follows:


Continue Reading What Does “Incur” Mean in an Extra Expense Provision? – Understanding Business Interruption Claims, Part 25

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

In these tough economic times, many businesses are looking to cut expenses and trim their budgets. While it is tempting to reduce insurance coverage to minimize operating costs, business owners should not skimp on insurance protection to trim budgets….
Continue Reading In Tough Economic Times, Extra Expense Coverage Should Survive Budget Cuts – Understanding Business Interruption Claims, Part 11