Extra Expense Form under RBC is designed to:

Extra Expense Form under RBC is designed to:

• A. Insure loss of income and profit.
• B. Keep business going in spite of a major loss.
• C. Proves additional income for employees during a loss.
• D. Generally written to 100% co-insurance.

Answer: (B)

Extra expense coverage focuses on the additional costs a business incurs to keep operating after a covered loss. The RBC Extra Expense Form is designed to keep the business going in spite of a major loss by paying those extra costs necessary to resume operations quickly, such as renting temporary space, moving equipment, or paying overtime. It’s not meant to reimburse lost income or profits—that’s covered by a separate business interruption provision that indemnifies net income during restoration. It also doesn’t provide extra income for employees; payroll protections are a different type of coverage. And co-insurance is a property-coverage concept that doesn’t define the purpose of this form.

Extra expense coverage focuses on the additional costs a business incurs to keep operating after a covered loss. The RBC Extra Expense Form is designed to keep the business going in spite of a major loss by paying those extra costs necessary to resume operations quickly, such as renting temporary space, moving equipment, or paying overtime. It’s not meant to reimburse lost income or profits—that’s covered by a separate business interruption provision that indemnifies net income during restoration. It also doesn’t provide extra income for employees; payroll protections are a different type of coverage. And co-insurance is a property-coverage concept that doesn’t define the purpose of this form.