The term “Extra Expense” is often misused in the context of a Commercial Property claim.
More importantly, Extra Expense is often improperly estimated and accounted for when placing coverage. A complete understanding of Extra Expense may eliminate unnecessary premiums. Conversely, a thorough understanding of Extra Expense coverage may allow coverage gaps to be filled that you didn’t realize existed.
Extra Expense is synonymously mistaken for “expense to reduce” coverage. These terms are not the same. In fact, “expense to reduce” is not really a separate coverage.
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