Glossary

Extra expense

Property coverage for the added costs of staying open after a covered loss, such as a temporary location, rented equipment or overtime.

Also called: extra expense coverage, EE, extra expense insurance

Extra expense is the money you spend, over and above normal operating costs, to avoid or reduce a shutdown after a covered property loss. Typical items are rent on a temporary location, expedited freight on replacement machinery, leased equipment, overtime and moving costs. business income coverage replaces the net income you lose; extra expense pays to keep that loss from growing.

In the ISO CP 00 30 business income and extra expense form, extra expense applies from the moment of loss and is not subject to the 72-hour waiting period that applies to business income. The form also pays to repair or replace property, but only to the extent doing so reduces the business income loss otherwise payable. Businesses that would face big added costs but little lost income, such as a bank or a data center, can buy it alone on the CP 00 50 form.

Say a print shop loses its pressroom to a fire and spends $18,000 renting a press and trucking jobs to it while the building is rebuilt. That $18,000 is the kind of expense this coverage targets, up to the limit and within the period of restoration. The usual pitfall is spending without telling the insurer or keeping receipts. Call early and document everything. The guide on extra expense coverage explained covers the form, and the business income (interruption) limit calculator helps set the limit.

Last reviewed October 10, 2026

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Related terms

Business income Property coverage that replaces net income and continuing operating expenses, including payroll, while a covered physical loss suspends operations. Period of restoration In a business income policy, the time for which lost income is covered, from a waiting period after damage until repairs should be done or operations resume. Contingent business income Coverage for income lost when physical damage at a supplier, customer or other business you rely on, not your own premises, slows or stops your operations. Civil authority Business income coverage for a shutdown when a government order blocks access to your premises because of damage to nearby property. Business overhead expense Disability insurance that reimburses a disabled owner's fixed business costs, such as rent, utilities and staff salaries, while they cannot work.

Related guides

Writing a business continuity plan: a step-by-step guide How to write a business continuity plan: impact analysis, recovery times, plans for people, sites, IT and suppliers, testing, and how it fits your insurance. Documenting a business interruption claim, from day one to final payment How to prove a business income and extra expense loss under ISO form CP 00 30: the records insurers ask for, how the loss is measured and where claims stall. Business interruption insurance: how business income coverage works What business income coverage pays after a covered physical loss, how the 72-hour wait, period of restoration and extended income work, and where the gaps are. Filing business insurance claims after a hurricane or wildfire How to protect property, report the loss, sort wind from flood and smoke from fire, claim business income and work the clocks after a hurricane or wildfire. Civil authority coverage: when an order closes your doors Civil authority coverage pays lost income when a government order blocks access after nearby damage. The one-mile, 72-hour and four-week limits, and case law. A restaurant kitchen fire claim, step by step, from first call to final check A hypothetical composite walkthrough of a kitchen fire claim: business income, extra expense, spoilage, coinsurance, proof of loss, appraisal and a timeline.

Related industries

Film production insurance What film and video producers need: a production package (cast, media, equipment, extra expense), GL, E&O, auto and comp, and permit and location rules.

Related tools

Business income (interruption) limit calculator Estimate the business income limit you need after a covered loss, including extended recovery and extra expense, then test it against your coinsurance clause.

Related en español

¿Qué es una póliza para dueños de negocio (BOP)? Una BOP combina propiedad, ingresos del negocio y responsabilidad civil general para negocios pequeños de bajo riesgo. Qué incluye, qué deja fuera y su precio. Seguro de interrupción de negocios: cómo funciona la cobertura de ingresos Qué paga la cobertura de ingresos del negocio tras una pérdida física cubierta: la espera de 72 horas, el periodo de restauración, la extensión y los huecos.