EXTRA EXPENSE WORKSHEET

(June 2022)

INTRODUCTION

It is difficult to determine the exact amount of extra expense coverage a given named insured needs. Without the careful evaluation of those exposures, it is possible that the limit will be either too high or too low. In early 1995, Insurance Services Office (ISO) developed and released a worksheet to assist the named insured in determining the proper limits. While it does not form a part of the policy or have a form number, it is a good tool to use in estimating the potential cost of an extra expense loss.

This form was introduced in Commercial Property Circular CP-95-34, 01/25/95. ISO gave permission to copy and use it and offered some guidance and instructions about how to use and apply it. The following worksheet is an adaptation of the original document, and the categories represent extra expenses common to many risks. As a result, it is important to evaluate each risk’s characteristics to determine its specific exposures and needs. A separate worksheet should be prepared and completed for each covered location.

EXTRA EXPENSE WORKSHEET Named Insured: ___________________________________________________________________________ Location: _________________________________________________________________________________
Extra Expense Category	1^st30-day period	2^nd30-day period	3^rd30-day period	4^th30-day period	5^th30-day period	6^th30-day period	Balance/ remaining periods
Expenses to move to and from temporary premises, such as moving equipment and stock; labor to set up temporary premises, etc.	$	$	$	$	$	$	$
Alterations at temporary premises	$	$	$	$	$	$	$
Renting temporary premises (including maintenance)	$	$	$	$	$	$	$
Renting temporary equipment	$	$	$	$	$	$	$
Cost of equipment purchased for use during the period of restoration	$	$	$	$	$	$	$
Cost of work performed by others or services purchased from others during interruption of normal operations or period of reduced capacity, when using facilities of others	$	$	$	$	$	$	$
Light, power, heat, and communications at temporary premises	$	$	$	$	$	$	$
Special advertising expense	$	$	$	$	$	$	$
Extra labor costs such as overtime and additional transportation allowances	$	$	$	$	$	$	$
Extra costs to transport supplies or to use new suppliers at temporary locations	$	$	$	$	$	$	$
*(1) Extra costs of new suppliers due to interruption at dependent or contributing locations	$	$	$	$	$	$	$
*(1) Extra costs of new parties to make and deliver insured products under contract of sale, due to interruption at dependent or contributing locations	$	$	$	$	$	$	$
*(2) Other expenses (describe below).	$	$	$	$	$	$	$
SUBTOTAL	$	$	$	$	$	$	$
Deduct total operating expenses that would not continue during the period of restoration due to loss.	$	$	$	$	$	$	$
Deduct the resale/salvage value of equipment purchased to use during the period of restoration after restoration is complete.
TOTAL	$	$	$	$	$	$	$
TOTAL NET EXTRA EXPENSE: $ ______________
Each period’s percentage of total extra expenses. Divide each column total by the total net extra expense.	___ %	___ %	___ %	___ %	___ %	___ %	___ %

*(1) If coverage applies to dependent or contributing properties (CP 15 34)

*(2) Describe Other Expenses Here:

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ADDITIONAL NOTES ON USING THE EXTRA EXPENSE WORKSHEET

• If Limits on Loss Payment is applied to the first 30 days and the first 60 days (with 100% of the limit then available for loss after 60 days), entries in the 3rd, 4th, 5th, and 6th columns are not required.
• If CP 15 07–Expanded Limits on Loss Payment is part of the policy, the 30-day periods in the 3rd, 4th, 5th and 6th columns may be used as necessary.
• The “Balance/Remaining Period” refers to any number of days accumulated in the preceding columns. If
  CP 15 31–Ordinance or Law–Increased Period of Restoration is attached, the period of restoration includes the time required to comply with ordinances or laws that apply.