INTRODUCTION

Determining the exact extra expense coverage needed for a specific insured is challenging. Without a careful assessment of exposures, the coverage limit might be set too high or too low. In early 1995, Insurance Services Office (ISO) introduced a worksheet to help insureds estimate appropriate limits. While not part of the policy or assigned a form number, it serves as a useful tool for estimating potential extra expense losses.

This worksheet was released in Commercial Property Circular CP-95-34 on 01/25/95. ISO authorized its copying and use and provided guidance on its application. The attached worksheet adapts the original, with categories reflecting common extra expenses. It’s essential to evaluate each risk’s unique characteristics to identify specific exposures and needs. A separate worksheet should be 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 for moving to and from temporary premises, including relocating equipment and stock, and labor costs for setup	$	$	$	$	$	$	$
Alterations at temporary premises	$	$	$	$	$	$	$
Renting temporary premises (including maintenance)	$	$	$	$	$	$	$
Renting temporary equipment	$	$	$	$	$	$	$
Cost of equipment to use during restoration period	$	$	$	$	$	$	$
Cost of work or services from others during operational interruptions or reduced capacity, when using facilities of others	$	$	$	$	$	$	$
Light, power, heat, and communications for temporary premises	$	$	$	$	$	$	$
Special advertising expense	$	$	$	$	$	$	$
Extra labor costs, such as overtime and additional transportation expenses	$	$	$	$	$	$	$
Extra costs for transporting supplies or switching to new suppliers at temporary locations	$	$	$	$	$	$	$
*(1) Extra costs from new suppliers due to disruptions at dependent or contributing locations	$	$	$	$	$	$	$
*(1) Extra costs of new parties to make and deliver insured products under the contract of sale, due to disruptions at dependent or contributing locations	$	$	$	$	$	$	$
*(2) Other expenses (describe below)	$	$	$	$	$	$	$
SUBTOTAL	$	$	$	$	$	$	$
Deduct total operating expenses not continuing 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:

___________________________________________________________________________________________

ADDITIONAL NOTES ON USING THE EXTRA EXPENSE WORKSHEET

If Limits on Loss Payment are applied during the first 30 days and the first 60 days (with 100% of the limit available after 60 days), then entries in the 3rd, 4th, 5th, and 6th columns are unnecessary.
If CP 15 07–Expanded Limits on Loss Payment is included in the policy, the 30-day periods in the 3rd, 4th, 5th, and 6th columns can be used as needed.
The “Balance/Remaining Period” indicates the total number of days accumulated in the previous columns. If an ordinance or law—such as CP 15 31–Ordinance or Law–Increased Period of Restoration—is attached, the restoration period also includes the time needed to meet the applicable ordinances or laws.