After a covered water pipe burst, a law firm rents temporary office space at twice its normal rent to stay open while repairs are made. This additional rental cost is BEST covered by:
Why this is the answer
Extra Expense (EE) coverage applies when an insured incurs costs above its normal operating expenses in order to continue operations or minimize a business suspension after a covered loss. The law firm in this scenario did not close — it relocated and stayed open, so there is no suspension of operations to trigger Business Income's lost-revenue replacement. Instead, the extra rent paid for the temporary office is a classic Extra Expense: an additional cost the firm would not have incurred but for the covered loss. Extra Expense is particularly important for businesses (hospitals, banks, law firms) that cannot afford any interruption. See FL Outline §I.C.2.
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