What is an extra insurance

Extra expense insurance is a form of commercial insurance that pays for a policyholder's additional costs while recovering from a major disruption. Extra expense insurance coverage applies to the period of time between when a business is forced to close temporarily and when it has been restored to normal operation.

What is an excess insurance policy?

Excess insurance provides additional financial limits above those covered by the underlying policy. Unlike umbrella policies, excess insurance does not expand the terms, or scope, of the underlying policy, but rather, covers higher limits to safeguard against unforeseen, catastrophic claims and loss.

What is an additional coverage?

Additional coverage is an endorsement of an original policy that allows an individual or group of people other than the policyholder to be insured by the policy. Typically, additional coverage is added to general liability insurance guidelines.

What is an extra expense?

Per the International Risk Management Institute (IRMI), extra expenses are defined as: “… additional costs in excess of normal operating expenses that an organization incurs to continue operations while its property is being repaired or replaced after having been damaged by a covered cause of loss.

What is underlying insurance?

Underlying Coverage — with respect to any given policy of excess insurance, the coverage in place on the same risk that will respond to loss before the excess policy is called on to pay any portion of the claim.