Extra Expense questions, see our form attached.
If an insured (a municipality for this loss) sustained a covered property loss and their department heads who are on salary drove around and inspected each building and even though they are salaried employees the city paid them some extra money for their hard work. Would the extra money on top of their salary be paid under our extra expense form?
Oklahoma Subscriber
No, there is no coverage for the additional monies given to the department heads as it does not meet the requirements for a recoverable extra expense, as stated: ... Reasonable and necessary expenses to avoid or minimize the suspension of business and to continue operations ... While the payment above and beyond the employees' salaries might be reasonable, it does not avoid nor minimize the suspension of the business operations.